The Fed can implement open market operations
A)more rapidly than changes in reserve requirements, but less rapidly than changes in the discount rate.
B)more rapidly than changes in the discount rate, but less rapidly than changes in reserve requirements.
C)less rapidly than either changes in the discount rate or changes in reserve requirements.
D)more rapidly than either changes in the discount rate or changes in reserve requirements.

Question

Quizplus · Accepted Answer

Open market operations can be implemented more rapidly than either changes in the discount rate or changes in reserve requirements because they involve the buying and selling of government securities in the open market, which can be executed quickly without the need for policy changes or administrative adjustments.

The Fed Can Implement Open Market Operations