Open market operations by the Fed lead to
A) changes in the number of banks.
B) immediate changes in aggregate supply.
C) changes in the federal funds rate.
D) shifts in the demand curve for reserves.

Question

Quizplus · Accepted Answer

Open market operations by the Fed involve buying or selling government securities, which directly affect the federal funds rate by altering the supply of reserves in the banking system.

Open Market Operations by the Fed Lead to