The Federal Open Market Committee (FOMC) makes decisions regarding the___________.

A. discount rate
B. reserve requirements
C. margin requirements on stock purchases (primarily common stock)
D. buying and selling of securities (primarily Treasury bonds)

Respuesta :

Answer:

The correct answer is letter "D": buying and selling of securities (primarily Treasury bonds).

Explanation:

The Federal Open Market Committee or FOMC is a department of the Federal Reserve Board in charge of establishing monetary policy. There are different meetings within a year they held to determine to continue with the current policy or to change it. A change in monetary policy represents the purchase or sale of government securities (treasury bonds) on the open market to stimuli the economy.