Final answer:
Carrying out open market operations is not a responsibility of the Board of Governors of the Federal Reserve System; it is the task of the Federal Open Market Committee (FOMC). The Board contributes to monetary policy and oversees Federal Reserve Banks and bank holding companies. The correct answer is b) carrying out open market operations.
Step-by-step explanation:
The correct answer is b) carrying out open market operations. This is the responsibility of the Federal Open Market Committee (FOMC). The Board of Governors does have a role in setting monetary policy, such as interest rate levels and macroeconomic policy. They also supervise the network of twelve regional Federal Reserve Banks.
Moreover, the Board of Governors does have the authority to approve bank mergers, determine permissible activities for bank holding companies, and oversee the supervisory roles of the Federal Reserve, including FOMC which conducts open market operations to influence the federal funds rate.