Economics & AnalysisQuestion 3 of 110
Which government body sets U.S. monetary policy by adjusting the federal funds target and open market operations?
a.The Federal Open Market Committee of the Federal Reserve
b.The U.S. Treasury Department
c.Congress through the annual budget process
d.The Securities and Exchange Commission
Explanation
Monetary policy is conducted by the Federal Reserve, and specifically the Federal Open Market Committee (FOMC), through open market operations and interest rate targets. Congress and the Treasury handle fiscal policy such as taxing and spending. The SEC regulates securities markets, not monetary policy.
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