development of economy.
Federal open market committee (FOMC) is an important part of Federal Reserve Board that decides about the direction of monetary policy. The committee meets at various times in a year to decide about maintenance and making alterations in the present monetary policy. When a decision to introduce a change in the current policies takes place, it results in purchasing or selling of government securities in U.S.A. in open market to bring development of economy. FOMC structure I. Its board of governors consists of seven members seven members, who gets appointment from the President of America with the approval of senate. II. The Chairman of the board is the President of Federal Reserve Bank of New York. III. Out of 11, four Federal Reserve Bank's presidents serve as Presidents in FOMC on rotational basis. The rest three presidents might attend the FOMC meetings but they do not have the permission to vote on the important monetary policy issues. FOMC-how does it function? FOMC hosts eigh