In recent years the Federal Open Market Committee has focused on a target for
A)M1 growth.
B)the federal funds rate.
C)the number of Treasury Securities issued by the federal government.
D)total reserves of banks.

Question

Quizplus · Accepted Answer

The Federal Open Market Committee (FOMC) has focused on a target for the federal funds rate. This refers to the interest rate at which banks lend reserves to each other overnight, and it is one of the most important monetary policy tools used by the Federal Reserve to influence the economy. The FOMC sets a target range for the federal funds rate and adjusts it as needed to achieve its goals of stable prices, full employment, and moderate long-term interest rates.

In Recent Years the Federal Open Market Committee Has Focused