Final answer:
The Federal Reserve Board is the organization with seven members that oversees U.S. monetary policy. Although the FOMC also includes members from the Board, it has additional members from regional banks, making it distinct from the Board of Governors.
Step-by-step explanation:
The organization in the Federal Reserve System that has seven members and oversees U.S. monetary policy is the Federal Reserve Board.
The Federal Open Market Committee (FOMC) is responsible for making decisions on open market operations and does indeed comprise seven members from the Board of Governors. However, the FOMC also includes five other voting members from the regional Federal Reserve Banks. The FOMC typically meets every six weeks and is the main tool used by the Fed for monetary policy.
It's important to recognize the distinction between the Federal Reserve Board, which makes up part of the FOMC, and the FOMC itself. The Board of Governors is a key component of the wider Federal Reserve System, with seven members who serve staggered 14-year terms and play a crucial role in shaping U.S. monetary policy.