Considering open market operations, which of the following observations is incorrect? A. it can be implemented quickly and cheaply B. it can be done quietly wihtout a lot of political debate C. the Fed can use this tool to change the money supply D. it is the most efficient tool to change the money supply

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Business

Emilio Galloway

3 May, 02:30

Considering open market operations, which of the following observations is incorrect? A. it can be implemented quickly and cheaply B. it can be done quietly wihtout a lot of political debate C. the Fed can use this tool to change the money supply D. it is the most efficient tool to change the money supply

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Jaden Francis · Answer 1

Answer: Option D

Explanation: In simple words, open market operations refers to the method in which the central bank purchase and sell securities of the government with the objective of regulating supply in the economy.

This is considered to be the most effective tool to regulate money supply as the total power lies in the hands of the government without any dependence on market forces.

Hence from the above we can conclude that the correct option is D.