When the Fed buys or sells government bonds to private banks in exchange for reserves,it is referred to as ________.

Question

Quizplus · Accepted Answer

The Fed buying or selling government bonds to private banks in exchange for reserves is called an open market operation. Seigniorage refers to the profit made by the government by creating and issuing money. Reserve targeting is a monetary policy strategy that involves targeting a specific level of reserves in the banking system. The Fed's dual mandate refers to its mandate to promote maximum employment and stable prices.

When the Fed Buys or Sells Government Bonds to Private