Question

Place the person or people named in the appropriate column.

Part of the Federal Open Market Committee (FOMC) Not part of the FOMC
1. president of the New York Federal Reserve Bank
2. the seven members of the Board of Governors
3. four District Bank presidents
4. president of the New York Stock Exchange
5. Treasurer of the United States
6. president of the Los Angeles Federal Reserve Bank

Answer 1

The Federal Reserve as a Central bank, embarks on Open Market Operations aimed at implementing its Monetary Policy through the trading of Securities. They sell more securities when they want to reduce monetary supply and buy more securities when they want to increase monetary supply.

The body in charge of this operation in the Federal Reserve is the Federal Open Market Committee (FOMC).

There are 12 members of the FOMC which includes;

• President of the New York Federal Reserve Bank
• The seven members of the Board of Governors
• Four District Bank presidents

Not Part of the FOMC;

• President of the New York Stock Exchange
• Treasurer of the United States
• President of the Los Angeles Federal Reserve Bank