When the Fed engages in open market operations, it is buying or selling
A)loans made to banks to meet the legal reserve requirement ratio.
B)U.S. government securities.
C)U.S. government securities newly issued by the U.S. Treasury.
D)gold.
E)capital equipment.

Question

Quizplus · Accepted Answer

The Federal Reserve conducts open market operations by buying or selling U.S. government securities to influence the money supply and interest rates.

When the Fed Engages in Open Market Operations, It Is