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

Question

Quizplus · Accepted Answer

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 use of government spending and taxation to influence the economy, while federal funds operations refer to the borrowing and lending of funds between banks.

The Purchase and Sale of Government Bonds by the Fed