The buying and selling of bonds by the Fed to change bank reserves is referred to as

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Buying and selling of bonds by the Fed is referred to as open market operations. Through this process, the Fed seeks to change the level of bank reserves, which has an impact on the money supply and ultimately, the overall economy. Financial intermediation refers to the process of connecting savers and borrowers, while reserve accounting and asset and liability management are accounting terms that do not pertain specifically to the Fed's role in monetary policy. Speculation involves making investments in the hope of earning a profit, but is not directly related to the Fed's operations.

The Buying and Selling of Bonds by the Fed to Change