Question

Which group votes on the open-market operations that are used to control the U.S. money supply and interest rates?

a.The Board of Governors of the Federal Reserve System.
b.The Federal Open Market Committee (FOMC).
c.The Federal Reserve System.
d.The 12 Federal Reserve Banks.

Answer 1

The Correct Answer is B

Step-by-step explanation:

• The Federal Open Market Committee (FOMC), a board inside the Federal Reserve System, is indicted following United States legislation with supervising the country's open market operations.
• The principal purpose of the Federal Open Market Committee is to manage the financial system.
• A consolidated record of economic situations in each of the Federal Reserve regions; done by the Federal Open Market Committee in expressing financial strategy.

Answer 2

b.The Federal Open Market Committee (FOMC).

Step-by-step explanation:

The FOMC mainly determines the monetary policy including the interest rates etc. It is a branch of Federal Reserve Board. The FOMC has a total of 12 voting members. These members include 5 Federal Reserve Bank presidents out of the total 12 presidents and the remaining 7 voting members are the Board of Governors. This way the FOMC votes and determines the monetary policy.