When the Federal Reserve prints money, what does it do with it?
A) buys bonds to reduce the interest rate
B) sells bonds to reduce the interest rate
C) buys bonds to raise the interest rate
D) sells bonds to raise the interest rate

Question

Quizplus · Accepted Answer

When the Federal Reserve prints money, it typically buys bonds to inject money into the economy, which helps to lower interest rates.

When the Federal Reserve Prints Money, What Does It Do