SIE practice questionmediumFOMC
The Federal Open Market Committee (FOMC) is responsible for:
- ADirecting open market operations and setting the federal funds rate target✓ Correct answer
- BRegulating the securities industry
- CSetting tax policy for the federal government
- DInsuring bank deposits
Explanation
Why A — Directing open market operations and setting the federal funds rate target
The FOMC directs open market operations and sets the target range for the federal funds rate. Tax policy belongs to Congress and the President, securities regulation to the SEC, and bank deposit insurance to the FDIC.
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