Outright purchases in the open market typically account for
A)no less than 50 percent of total Fed transactions.
B)no more than 30 percent of total Fed transactions.
C)no less than 20 percent total Fed transactions.
D)no more than 10 percent of total Fed transactions.

Question

Quizplus · Accepted Answer

Outright purchases in the open market by the Federal Reserve typically account for a small portion of its total transactions, often no more than 10 percent. The majority of the Fed's operations are conducted through repurchase agreements (repos) and reverse repos, which are short-term and provide more flexibility in managing the money supply and interest rates.

Outright Purchases in the Open Market Typically Account for