The Federal Open Market Committee (FOMC)directs the Open Market Desk to

Question

Quizplus · Accepted Answer

The Open Market Desk is responsible for conducting open market operations, which involve buying or selling government securities in order to influence the supply of money and credit in the economy. The FOMC directs the Open Market Desk in carrying out these operations.

Answer: D 
 The FOMC is responsible for setting the target federal funds rate, which is the interest rate at which banks lend to each other overnight. The Open Market Desk may conduct open market operations in order to achieve the target federal funds rate as directed by the FOMC.