Which of the following are functions of the Federal Open Market Committee? A) ^The^{specification}^of^growth^rates^for^the^major^money^aggregates:^M1^, ^M2^{, and M}3 B) The specification of the discount rate C) The specification of instructions for week-to-week Fed activity at the New York Trading Desk D) The specification of the reserve requirement E) a and c

Question

Quizplus · Accepted Answer

The Federal Open Market Committee (FOMC) is responsible for open market operations, which include specifying instructions for week-to-week Federal Reserve activities at the New York Trading Desk (C) and influencing the growth rates of major money aggregates (A). The discount rate and reserve requirements are determined by the Board of Governors of the Federal Reserve System, not the FOMC.

Which of the Following Are Functions of the Federal Open