The most frequently used and the most flexible tool that the Federal Reserve has that it can use to change the economic environment is:

Question

Quizplus · Accepted Answer

Open market operations are the most frequently used and most flexible tool of the Federal Reserve. They involve the buying and selling of government securities in the open market to influence the level of reserves in the banking system, which in turn affects interest rates and the overall economy.

The Most Frequently Used and the Most Flexible Tool That