The Fed generally conducts open market operations in
A)long-term corporate bond markets.
B)the federal funds market.
C)the Treasury securities market.
D)the commercial paper market.

Question

Quizplus · Accepted Answer

The Fed conducts open market operations by buying and selling Treasury securities in the Treasury securities market. This is the most common and widely used method of monetary policy implementation. The other markets listed (long-term corporate bond, federal funds, and commercial paper) are not typically used for open market operations by the Fed.

The Fed Generally Conducts Open Market Operations in