It is the responsibility of the Trading Desk at the Federal Reserve Bank of New

Question

It is the responsibility of the Trading Desk at the Federal Reserve Bank of New York to implement policies in the form of O changes in the spread between the federal funds rate and the discount rate that are consistent with rules established by the twelve Federal Reserve bank presidents O changes in foreign exchange rates that are consistent with policies established by the Secretary of the Treasury. O variations in reserve requirements that are consistent with the announcements by the Chair of the Fed's Board of Governors. O buying or selling government securities that are consistent with the FOMC Directive.

Explanation / Answer

The Federal Open Market Committee (FOMC) is the Federal Reserve System’s monetary policy-making body. The FOMC gives responsibility for implementing U.S. monetary policy to the Manager of the System Open Market Account (SOMA) at the Federal Reserve Bank of New York through the Authorization.

Hence, the correct option is d. buying or selling government securities that are consistent with the FOMC Directive.

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