Open market operations are the
A)lending of reserves to the banking system by the Fed.
B)purchase or sale of gold by the Fed.
C)minimum percentage of loans that banks must retain as reserves in the open market.
D)purchase or sale of government securities by the Fed.
E)borrowing of reserves by the Fed from the banking system.

Question

Quizplus · Accepted Answer

Open market operations refer to the buying and selling of government securities by the Federal Reserve to control the money supply and interest rates.

Open Market Operations Are the