Buying and selling U.S. Treasury Securities for the Fed's own portfolio is called:

Question

Quizplus · Accepted Answer

Buying and selling U.S. Treasury Securities for the Fed's own portfolio is known as open market operations. This is a tool used by the Federal Reserve to manage the money supply in the economy. By buying Treasuries, the Fed injects money into the economy, while selling Treasuries withdraws money from circulation. This allows the Fed to influence short-term interest rates and maintain its monetary policy objectives. Choices A, B, and D are not correct descriptions of this process.

Buying and Selling U