Question

T/F,The Federal Open Market Committee is an institution that oversees and regulates the banking system and therefore controls the monetary base.

Answer 1

True.

The Federal Open Market Committee (FOMC) is an institution that oversees and regulates the banking system and controls the monetary base through its control of the federal funds rate, which influences interest rates and credit availability throughout the economy. The FOMC is the policy-making arm of the Federal Reserve System, responsible for setting monetary policy in the United States.