Question

The citizens in countries such as Panama, El Salvador, Ecuador, and Argentina widely use the U.S. dollar as their main currency (everything said up to this point is true). Conclusion: According to our textbook, the Federal Reserve Bank allows these countries to send an official representative to the Federal Open Market Committee (FOMC) meetings so that they can voice their concerns about U.S. monetary policy. True or False True False

Answer 1

False

( Federal open market committee is responsible for taking decisions about the monetary policy. The Federal open market committee has 12 members and they meet 8 times a year in order to review the economics conditions and design monetary policy in such a way that growth of national economy is promoted and economic stability is achieved. These meetings are supposed to have secrecy.

* Therefore, no representatives from countries like El salvador and Ecuador which use dollar as a currency aren't allowed in the meetings of federal open market committee and opinions of these nations aren't given any significance in the formation of US Monetary policy.)