The federal funds rate is set by the feds open market, Financial Management

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The federal funds rate is set by the feds open market

The following appeared in a feature in the New York Times that provides an overview of the Federal Reserve System: "The federal funds rate is set by the Fed's Open Market Committee, composed of the chairman, the six other governors, and five of the 12 regional bank presidents, on a rotating basis."

Do you agree that the federal funds rate is set by the FOMC? Briefly explain.

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Financial Management: The federal funds rate is set by the feds open market

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