The Primary Responsibility of the Federal Open Market Committee (FOMC)

question 15

Multiple Choice

The primary responsibility of the Federal Open Market Committee (FOMC) is to

• A) set monetary policy
• B) supervise and examine member banks.
• C) guarantee excess reserves to National Banks.
• D) enforce margin requirements Use this data to answer questions 4-6:
• Total Reserves $80,000,000; Reserve Requirement 5%; Total Deposits $700,000,000.

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Definitions:

Total Assets

The sum of all assets owned by a company, displayed on the balance sheet, including current and non-current assets.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Total Current Assets

The sum of all assets that a company expects to convert into cash, sell, or consume within one year or within the normal operating cycle of the business.

Current Liabilities

Obligations a company is expected to pay within a year, including accounts payable, short-term loans, and other short-term debts.