The Federal Open Market Committee (FOMC)is Composed of the Seven

question 109

Multiple Choice

The Federal Open Market Committee (FOMC) is composed of the seven members of the Board of Governors,

• A) the president of the New York Federal Reserve District Bank,and four of the remaining 11 Federal Reserve District Bank presidents who rotate on an annual basis.
• B) and five state governors who rotate on an annual basis.
• C) four Federal Reserve District Bank presidents who rotate on an annual basis,and the head of the Senate Banking Committee.
• D) and the Secretary of the Treasury.

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Definitions:

Investment Turnover

A financial ratio that measures the efficiency of a company's use of investments in assets to generate sales or revenue.

Return On Sales

A financial ratio that calculates the percentage of sales revenue that has turned into profits, indicating how efficiently a company is operating.

Sales Revenue

The full income received from goods sales or service delivery before taking out any operational costs or expenditures.

Return On Investment

A financial metric that calculates the profitability of an investment by dividing the profit (or loss) by the cost of the investment.