Chapter 31, Problem 1MCQ

To determine

The name of the rate set by the Federal Open market committee at each meeting.

Explanation of Solution

The Federal Reserve System's FOMC can be seen as the entity responsible for determining the country's monetary policy. All judgements relating to the actions of open market operations, which have an impact on the federal funds rate (the rate at which depository institutions lend to one another), the size and makeup of the Federal Reserve's asset assets, and public connectivity about the probable future direction of monetary policy are made by the FOMC.

Thus, from the above we can conclude that the correct option is B.