Open market operations are the buying and selling of Federal Reserve Notes in the open market. means by which the Fed supplies the economy with currency. buying and selling of government securities by the Fed. means by which the Fed acts as the government's banker. buying and selling of government securities by the Treasury. qzuilet

Question

Business

Dangelo Boyer

11 August, 11:02

Open market operations are the buying and selling of Federal Reserve Notes in the open market. means by which the Fed supplies the economy with currency. buying and selling of government securities by the Fed. means by which the Fed acts as the government's banker. buying and selling of government securities by the Treasury. qzuilet

+4

Answers (1)

Know the Answer?

Anderson Stein · Answer 1

Buying and selling of government securities by the Fed.

Explanation:

Open market operations is a part of monetary policy instruments that Fed utilize in controlling the money supply in an economy.

When there is a need to reduce the money supply, then Fed should sells the government securities to the public which will reduce the money supply.

On the other hand, if there is a need to increase the money supply then as a result Fed should buy the government securities from the public and this will increases the money supply.