Asked by Mackenzie Kiernan on Jul 22, 2024
Verified
Open market operations refer to purchase and sales of
A) bonds by the United States Treasury.
B) United States Treasury securities on the open market by the Fed.
C) corporate stocks and bonds by the corporation commission.
D) corporate securities on the open market by the FeD.
United States Treasury Securities
Debt securities issued by the U.S. government to fund its budget deficits and manage the national debt.
Open Market
A venue where buyers and sellers engage in the trade of commodities, securities, and other financial instruments under defined regulations.
- Discern the resources utilized by the Federal Reserve to carry out monetary policy.
- Comprehend the operational mechanics of open market operations and their direct impact on the economy.
Verified Answer
JK
Jason KotakisJul 27, 2024
Final Answer :
B
Explanation :
Open market operations refer to the buying and selling of United States Treasury securities on the open market by the Federal Reserve, which is used to control the money supply in the economy.
Learning Objectives
- Discern the resources utilized by the Federal Reserve to carry out monetary policy.
- Comprehend the operational mechanics of open market operations and their direct impact on the economy.