Question

question 86
1 pts
the fed has the power to increase or decrease the number of dollars in the economy through the decisions of
the board of governors.
the fomc.
the u.s. treasury.
the regional federal reserve bank presidents.

Explanation:

The Federal Open Market Committee (FOMC) is the body within the U.S. Federal Reserve System responsible for making decisions about open market operations, which are the primary tool for adjusting the money supply (increasing or decreasing the number of dollars in the economy). The Board of Governors sets reserve requirements and discount rates, but the FOMC controls the key action for changing overall money supply via buying/selling government securities. The U.S. Treasury and regional Fed presidents do not hold this authority.

Answer:

○ the FOMC.