The Federal Open Market Committee impacts the economy through open market operations.
Open market operations allow the Fed to alter the reserves in the banking system,thereby increasing or decreasing credit.

Question

Quizplus · Accepted Answer

Open market operations involve the buying and selling of government securities, which in turn affects the reserves of the banking system. By increasing or decreasing reserves, the Fed can influence the amount of credit available in the economy. This can have ripple effects on interest rates, inflation, and economic growth.

The Federal Open Market Committee Impacts the Economy Through Open