The Open Market Trading Desk is where the Federal Reserve:
A)buys and sells government bonds.
B)makes discount window loans to banks.
C)issues requirements on excess reserves.
D)issues statements on monetary policy changes.

Question

Quizplus · Accepted Answer

The Open Market Trading Desk is responsible for implementing monetary policy on behalf of the Federal Reserve. One of its main tools is buying and selling government bonds in the open market in order to adjust the supply of money in the economy. This helps the Fed control inflation and promote economic growth.

The Open Market Trading Desk Is Where the Federal Reserve