To decrease the money supply, the Federal Reserve sells U.S. government bonds in open-market operations.

Name: To decrease the money supply, the Federal Reserve sells U.S. government bonds in open-market operations.
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The Fed's open-market operations involve the buying and selling of securities on the open market. If the Fed wants to tighten the money supply it will sell securities. If the Fed wants to loosen the money supply (create more money to flow through the economy), it will buy securities.

To Decrease the Money Supply, the Federal Reserve Sells U