QuestionMay 22, 2025

What makes the Federal Open Market Committee (FOMC) the Fed's primary policy-making body? A. It has the power to raise or lower interest rates. B. It has the power to establish or dissolve Federal Reserve district banks. C. It has the power to create or repeal financial protections for consumers. D. It has the power to appoint or dismiss members of the Board of Governors.

What makes the Federal Open Market Committee (FOMC) the Fed's primary policy-making body? A. It has the power to raise or lower interest rates. B. It has the power to establish or dissolve Federal Reserve district banks. C. It has the power to create or repeal financial protections for consumers. D. It has the power to appoint or dismiss members of the Board of Governors.
What makes the Federal Open Market Committee (FOMC) the Fed's primary policy-making body?
A. It has the power to raise or lower interest rates.
B. It has the power to establish or dissolve Federal Reserve district banks.
C. It has the power to create or repeal financial protections for consumers.
D. It has the power to appoint or dismiss members of the Board of Governors.

Solution
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Answer

A. It has the power to raise or lower interest rates. Explanation 1. Identify FOMC's primary function The Federal Open Market Committee (FOMC) is responsible for setting monetary policy, primarily through the manipulation of interest rates. 2. Match function with options Option A states that the FOMC has the power to raise or lower interest rates, which aligns with its primary function.

Explanation

1. Identify FOMC's primary function<br /> The Federal Open Market Committee (FOMC) is responsible for setting monetary policy, primarily through the manipulation of interest rates.<br /><br />2. Match function with options<br /> Option A states that the FOMC has the power to raise or lower interest rates, which aligns with its primary function.
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