Question

The Federal Open Market Committee consists of which of the following combination of groups?

A. the Securities and Exchange Commission and the Federal Trade Commission
B. the Board of Governors and select district bank presidents
C. the Council of Economic Advisors and Congressional Budget Office
D. the Federal Reserve Bank and Congress

Answer 1

The FOMC consists of the seven members of the Federal Reserve's Board of Governors and five district bank presidents, with the New York district president as a permanent voting member.

Step-by-step explanation:

The Federal Open Market Committee (FOMC) is an integral part of the United States Federal Reserve System, responsible for overseeing the country's open market operations. This committee consists of the seven members of the Federal Reserve's Board of Governors and five voting members from the regional Federal Reserve Banks. Notably, the president of the New York district bank is a permanent voting member of the FOMC, while the remaining four voting positions are filled on a rotating basis from the other eleven districts. The FOMC conducts meetings roughly every six weeks to decide on monetary policy, which primarily involves targeting the federal funds rate through the buying and selling of government securities.