Which of the following is true about the Federal Advisory Committee (FAC)?

Question

It controls the growth of the United States money supply.

It consists of members elected by the constituents in their district.

It makes key decisions about interest rates.

It collects information about economic conditions in each district.

Answer 1

The statement that is true about the Federal Advisory Committee (FAC) is:

• It collects information about economic conditions in each district.

The FAC advises the Federal Reserve and provides insight into economic conditions affecting their respective areas. The other statements regarding control over the money supply, elected members, and decisions about interest rates are not accurate descriptions of the FAC's role.