Question

The​ (FOMC) Federal Open Market Committee

a. includes the Board of Governors and the presidents of the 12 Federal Reserve regional banks​ (though not all are voting​ members).
b. determines the target federal funds rate and the direction of open market operation policies.
c. makes decisions that are voted on by all 7 members of the Board of Governors but only 5 of the 12 regional bank presidents.
d. All of the above.
e. A and B only.

Answer 1

B) determines the target federal funds rate and the direction of open market operation policies.

Step-by-step explanation:

The Federal Open Market Committee (FOMC) is made up of 12 members:

• the seven members of the Board of Governors of the FED
• president of the Federal Reserve Bank of New York
• four of the remaining eleven federal reserve bank presidents

Its main roles are to:

1. set monetary policy
2. set target federal funds rate
3. implement the open market operation policies