The purchase and sale of government bonds by the Fed for the purpose of altering bank reserves is known as

Question

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The purchase and sale of government bonds by the Fed for the purpose of altering bank reserves is known as open market operations. Fiscal policy refers to the government's use of spending and taxation policies to influence economic activity. Federal funds operations refer to the transactions between banks of their reserve balances held at the Federal Reserve. Zero coupon bonding refers to bonds that are sold at a discount and pay no interest, with the investor receiving the full face value upon maturity.

The Purchase and Sale of Government Bonds by the Fed