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

Question

Responses

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

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

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

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

Answer 1

The correct response that describes a role of the Federal Open Market Committee (FOMC) is:

managing the nation’s money supply.

The FOMC is primarily responsible for guiding monetary policy in the United States, which includes managing the money supply and influencing interest rates.