The Federal Reserve's primary tool for changing the money. In order to increase the number of dollars in the U. S. economy (the money supply), the Federal Reserve will buy government bonds.

Open Market operations

Question

Business

Caylee Pace

1 July, 15:21

The Federal Reserve's primary tool for changing the money. In order to increase the number of dollars in the U. S. economy (the money supply), the Federal Reserve will buy government bonds.

Open Market operations

+2

Answers (1)

Know the Answer?

Moody · Answer 1

Answer: True - Open Market operations

Explanation:

The open market operation is the process of purchasing and selling the various types of security of the government and it is one of the flexible tool that is used for managing the monetary policies in the market.

According to the given question, The federal reserve is one of the primary tool that reduce the money supply in the open market of united states economy.

It also able to buying the bonds of the government from the banks and the others financial organization and open market operation is one of the flexible and efficient tool.

Therefore, Open market operations is the correct answer.

The Federal Reserve's primary tool for changing the money. In order to increase the number of dollars in the U. S. economy (the money supply), the Federal Reserve will buy government bonds.Open Market operations

The Federal Reserve's primary tool for changing the money. In order to increase the number of dollars in the U. S. economy (the money supply), the Federal Reserve will buy government bonds.

Open Market operations