The Group Responsible for Deciding on Monetary Policy Is the

question 78

Multiple Choice

The group responsible for deciding on monetary policy is the

• A) Federal Open Market Committee.
• B) Board of Governors only.
• C) Federal Advisory Council.
• D) group of 12 Federal Reserve Bank presidents only.

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Definitions:

M2

A gauge of the total money available that encompasses physical currency, deposits in checking accounts, and near money assets like savings accounts and money market investments, which can be quickly converted to cash.

Savings Deposits

Accounts at banks or financial institutions where individuals can deposit their money to earn interest over time.

Demand Deposits

Bank accounts from which deposited funds can be withdrawn at any time without any notice to the bank.

Fiscal Policy

Governmental policies regarding taxation and spending to influence an economy.