When the Fed purchases securities on the open market,the securities it buys are

A) common stock of United States corporations.
B) corporate bonds.
C) securities issued by state governments.
D) securities issued by the federal government.
E) All of the choices are true.

Federal Securities

Financial instruments issued by the federal government, such as treasury bills and bonds, used to raise funds for governmental expenditures.

Common Stock

Common stock is a type of security that represents ownership in a corporation, with holders typically having voting rights and potential dividends.

Corporate Bonds

This is a debt of the corporation. Bondholders have loaned money to the company and are its creditors.