________ involve(s) the Fed buying and selling U.S. government securities to increase or decrease the money supply.

Question

Quizplus · Accepted Answer

Open-market operations involve the Fed buying and selling U.S. government securities to increase or decrease the money supply. Discounting refers to the practice of lending money to banks, while reserve requirements refer to the percentage of deposits that banks must keep on reserve. Deficit funding refers to government borrowing to finance budget deficits.

________ Involve(s) the Fed Buying and Selling U