From time to time, the Federal Reserve sells various quantities of government bonds to the private sector through a process called
A) bond recall procedures.
B) backflip bond investments.
C) open market sales.
D) voluntary redemption procedures.

Question

Quizplus · Accepted Answer

The correct term for the process described is "open market sales." Through this process, the Federal Reserve can influence interest rates and the money supply by adjusting the amount of government bonds available for the private sector to purchase. A, B, and D are not accurate terms for this process.

From Time to Time, the Federal Reserve Sells Various Quantities