The primary purpose of the Federal Open Market Committee (FOMC)is to:
A)set reserve requirements.
B)extend loans to member banks of the Fed.
C)buy and sell government securities.
D)distribute Federal Reserve notes.
E)enforce bank regulations.

Question

Quizplus · Accepted Answer

The primary purpose of the FOMC is to conduct monetary policy by buying and selling government securities with the goal of achieving stable prices, maximum employment, and moderate long-term interest rates. This is done through open market operations, which involve the purchase and sale of securities in the open market. The FOMC does not set reserve requirements, extend loans to member banks, distribute Federal Reserve notes, or enforce bank regulations.

The Primary Purpose of the Federal Open Market Committee (FOMC)is