Which one of the following transactions or operations is entirely at the initiative of the Federal Reserve?

Question

Quizplus · Accepted Answer

Open market operations involve the Federal Reserve buying or selling government securities in order to influence the supply of money and credit in the economy. This is entirely initiated by the Federal Reserve. The other options (changes in float, bank borrowings, and Treasury cash holdings) could be influenced by actions of individual banks or the Treasury Department, and may not be entirely at the initiative of the Federal Reserve.

Which One of the Following Transactions or Operations Is Entirely