The Fed's open market operations involve

Question

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The Fed's open market operations involve buying and selling of government bonds. This is a tool used by the Fed to influence the supply of money and credit in the economy. When the Fed buys government bonds, it injects money into the banking system and increases the supply of credit. When it sells government bonds, it withdraws money from the banking system and reduces the supply of credit. This can help the Fed manage inflation and economic growth.

The Fed's Open Market Operations Involve