The Federal Open Market Committee

question 24

Multiple Choice

The Federal Open Market Committee

• A)operates with almost complete discretion over monetary policy.
• B)is required to increase the money supply by a given growth rate each year.
• C)is required to keep the interest rate within a range set by Congress.
• D)is required by its charter to change the money supply using a complex formula that concerns the tradeoff between inflation and unemployment.

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Definitions:

Internal Carotid Artery

A major artery that supplies blood to the brain, eyes, and forehead, branching off from the common carotid artery.

Middle Cerebral

Pertains to the middle cerebral artery, a major artery in the brain that supplies blood to the lateral parts of the frontal, temporal, and parietal lobes.

Sense Organs

Organs of the body that receive external stimuli and transmit sensory information to the brain, including eyes, ears, nose, tongue, and skin.

Basilar Artery

This artery is formed by the union of the two vertebral arteries at the base of the skull, supplying blood to the brainstem and posterior part of the brain.