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Topic: Business
Number of pages / Number of words: 7 / 1752
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(Federal Reserve Bank of New York [FRBNY], n.d.)

"In the early 1920s, the Federal Reserve began to see open market operations as an effective tool with which it could and should control the aggregate quantity of credit." (Small & Clouse, 2005, 15) According to The Federal Reserve Bank of Minneapolis, The Federal Open Market Committee (FOMC) "is the most important monetary policymaking body of the Federal Reserve System...


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It is responsible for the formulation of a policy designed to promote economic growth, full employment, stable prices, and a sustainable pattern of international trade and payments." (Federal Reserve Bank of Minneapolis [FRBM], n.d.) Open market operations directly affect the amount of available reserves in the banking system...


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