Which of the following describes a role of the Federal Open Market Committee?(1 point)

Responses

managing the nation’s money supply
managing the nation’s money supply

setting the discount rate and reserve requirements for member banks
setting the discount rate and reserve requirements for member banks

appointing members to the Board of Governors
appointing members to the Board of Governors

collecting economic information for each of the 12 districts of the nation
collecting economic information for each of the 12 districts of the nation

1 answer

The role of the Federal Open Market Committee (FOMC) primarily involves managing the nation’s money supply. Therefore, the correct response is:

managing the nation’s money supply.

While the FOMC does influence the discount rate and reserve requirements through its decisions, it is not directly responsible for setting those rates — that responsibility lies with the Board of Governors. The FOMC also does not appoint members to the Board of Governors or collect economic information for each district, though it does consider economic conditions in its decision-making.