112 Unit 2 Money and Regulation Federal Open Market Committee of the Federal Open Market Committee. The Federal Open Market Committee (FOMC) has 12 members. It meets eight times a year to make key decisions that set US monetary policy and allow the Federal Reserve System to carry out its functions. The chairperson of the BOG is also the chairperson of the FOMC. The president of the Federal Reserve Bank in New York is always a member of the FOMC. The remaining four members each serve one-year terms. They are chosen from the presidents of the other 11 Federal Reserve Banks. Presidents of the Federal Reserve Banks who are not on the FOMC still attend the meetings and participate in the discussions. Checkpoint 5.2 1. How is the Federal Reserve System set up differently than its predecessors? 2. Why did the Fed’s designers want to avoid making the Fed a single bank in New York? 3. How are members of the Board of Governors selected? 4. What is the Federal Open Market Committee responsible for? 5. Who are the members of the FOMC? Build Your Vocabulary As you progress through this course, develop a personal glossary of banking terms and add it to your portfolio. This will help you build your banking vocabulary. Write out a defi nition for each of the following terms, and add it to your personal glossary. Federal Reserve System Fed monetary system decentralization Federal Reserve Bank Board of Governors (BOG) Federal Open Market Committee (FOMC) Source: Flicker (Federalreserve) I n 2014, J a n et L . Ye l l e n was a p po i nted th e c h a i r of th e B oa rd of G ove r n o rs of t h e Fed e ra l Res e r ve S y ste m .