Dynamic open market operations
A)are aimed at achieving changes in monetary policy.
B)are used much more frequently than defensive open market transactions.
C)are used to offset disturbances to the monetary base.
D)make it easy to deduce the Fed's intentions for monetary policy.

Question

Quizplus · Accepted Answer

Dynamic open market operations are specifically aimed at implementing changes in monetary policy, unlike defensive operations which are meant to offset temporary fluctuations in the monetary base.

Dynamic Open Market Operations