Open market bond sales can be conducted either by the Federal Reserve or the Treasury Department,and either way the result is the same.

Question

Quizplus · Accepted Answer

Open market bond sales conducted by the Federal Reserve and Treasury Department have different objectives and methods. The Federal Reserve conducts open market operations to implement its monetary policy by buying or selling treasury securities to influence the money supply and interest rates. The Treasury Department conducts open market bond sales to finance government spending or debt obligations. While both may affect the bond market, the intent and outcome of their actions are not always the same.

Open Market Bond Sales Can Be Conducted Either by the Federal