An open market operation occurs when the buys or sells government securities .
A) a commercial bank; from or to the public
B) a commercial bank; from or to the federal government
C) Federal Reserve System; from or to the federal government
D) Federal Reserve System; in the open market

Question

Quizplus · Accepted Answer

An open market operation is a monetary policy tool used by the Federal Reserve System (the central bank of the United States) to buy or sell government securities in the open market. Therefore, the correct choice is D, "Federal Reserve System; in the open market."

An Open Market Operation Occurs When the Buys or Sells