Question

The research document given to the Federal Open Market Committee that contains information on the state of the economy in each Federal Reserve district is called the:

A) beige book.
B) green book.
C) blue book.
D) black book.

Answer 1

The research document provided to the Federal Open Market Committee is known as the Beige Book, and it plays a key role in informing the FOMC's decisions on open market operations.

Step-by-step explanation:

The research document given to the Federal Open Market Committee (FOMC) containing information about the state of the economy in each Federal Reserve district is called the Beige Book. The FOMC is comprised of members from the Federal Reserve's Board of Governors and regional Federal Reserve Banks, meeting every six weeks to make key decisions regarding open market operations, which are a critical tool for controlling the money supply and influencing the federal funds rate. The tools at the disposal of the Federal Reserve to implement U.S. monetary policy include reserve requirements, the discount rate, and the federal funds rate target, with the open market operations being particularly significant in recent decades.