Multiplication problem: (The number of Reserve Bank presidents who attend Federal Open Market Committee meetings) times (the number of Federal Reserve presidents who vote on the FOMC at any given time) times (the number of times per year that the FOMC establishes its long-term goals and reports them to Congress) times (the approximate number of weeks that pass between FOMC meetings).

A. 500

B. 2880

C. 720

D. 4545

The correct answer is C

FOMC meetings do not generally include

A. a discussion of general economic conditions.

B. a review of recent actions by System account managers.

C. a review of recent political polls.

D. a discussion of financial conditions and monetary policy alternatives.

E. a vote on monetary policy.

The correct answer is C

Do members of the Board of Governors serve on the FOMC on a rotating basis?

A. Yes

B. No

The correct answer is B

FOMC stands for:

A. Federal Organizing Management Committee

B. Fruit of the Month Club

C. Freely Offering Monetary Cash

D. Federal Open Market Committee

The correct answer is D

When the Fed conducts open market operations to reduce reserves, the fed funds rate:

A. decreases because there are more funds available for banks to lend and borrow.

B. decreases because the Fed borrows money from banks.

C. increases because there are less funds available for banks to lend and borrow.

D. increases because the Fed lends money to banks.

The correct answer is C