Final answer:
The Federal Open Market Committee (FOMC) meets around eight times per year to set the federal funds rate. The FOMC is responsible for making decisions regarding open market operations and consists of members from the Federal Reserve's Board of Governors and regional Federal Reserve Banks.
Step-by-step explanation:
False. The Federal Open Market Committee (FOMC) typically meets every six weeks, which adds up to around eight times per year. The FOMC is responsible for setting the federal funds rate, which is the interest rate at which depository institutions lend funds to each other overnight. The FOMC consists of seven members of the Federal Reserve's Board of Governors, as well as five voting members from the regional Federal Reserve Banks. The FOMC tries to act by consensus, but the Federal Reserve's chairman has traditionally played a powerful role in defining and shaping that consensus.