Question

What is the Federal Open Market Committee (FOMC)?


research arm of the Federal Reserve


Federal Reserve committee that makes key decisions about interest rates and the growth of the U.S. money supply


seven-member board that oversees the Federal Reserve System


group of Federal Reserve governors that influences the level of real GDP and the rate of inflation in the economy

Answer 1

The Federal Open Market Committee (FOMC) is best described as the **Federal Reserve committee that makes key decisions about interest rates and the growth of the U.S. money supply**. The FOMC is responsible for setting monetary policy, including the target for the federal funds rate, which influences other interest rates in the economy, and for implementing open market operations to manage the supply of money.