Question

of the Federal Reserve 18. The Federal Open Market Committee (FOMC) is made up of: A) the chair of the Board of Governors along with the 12 presidents of the Fede ent of the New York al Reserve System along with Banks. B) the seven members of the Board of Governors along with the president of the Federal Reserve Bank. C) the seven members of the Board of Governors of the Federal Reserve S the three members of the Council of Economic Advisers. D) the seven member of the Board of Governors of the Federal Reserve Syst president of the New York Federal Reserve Bank and four other Federal presidents on a rotating basis. Reserve System along with the er Federal Reserve Banks 19. To say that the Federal Reserve Banks are quasi-public banks means that: A) they are privately owned, but managed in the public interest. B) they deal only with banks of foreign nations and do not have direct business contest... U.S. banks. C) they deal only with commercial banks, and not the public. D) they are publicly owned, but privately managed. 20. Which of the following is the basic economic policy function of the Federal Reserve Banks? A) holding the deposits or reserves of commercial banks B) acting as fiscal agents for the Federal government C) controlling the supply of money D) the collection or clearing of checks among commercial banks 21. Most modern banking systems are based on: A) money of intrinsic value. B) commodity money. C) 100 percent reserves. D) fractional reserves. 22. The reserves of a commercial bank consist of: A) the amount of money market funds it holds. B) deposits at the Federal Reserve Bank and vault cash. C) government securities that the bank holds. D) the bank's net worth.

Answer 1

QUESTION: 18

The federal open market committee ( FOMC ) is made up of

SOLUTION:

the ( D ) will be correct option here i.e., the seven member of the board of governors of the federal reserve system along with the president of the New York federal reserve bank and four other federal reserve banks presidents on the rotation basis.

To achieve macro economic stability in an economy, FEDERAL RESERVE SYSTEM introduce the Monetary policy making body which is called as  the federal open market committee ( FOMC) which has its eight meetings per year or in six weeks one meeting is held . The FOMC has 12 members which has 7 members of board of governors + 5 are the reserve bank presidents.