The _____ oversee(s) the main tool of monetary policy.
A) 12 regional Federal Reserve banks
B) Federal Open Market Committee
C) Council of Economic Advisers
D) Congressional Budget Office

Question

Quizplus · Accepted Answer

The Federal Open Market Committee (FOMC) oversees the main tool of monetary policy, which is the buying and selling of government securities in the open market to influence the supply of money and credit. The 12 regional Federal Reserve banks assist in carrying out monetary policy decisions made by the FOMC, but do not oversee the main tool. The Council of Economic Advisers and Congressional Budget Office are not directly involved in monetary policy decisions.

The _____ Oversee(s) the Main Tool of Monetary Policy