Which of the following is NOT an accurate description of open market operations prior to 2008?
A) It was used to affect the market for bank reserves.
B) It was used to control the federal funds rate.
C) It involved buying and selling short-term Treasury securities.
D) It involved buying and selling long-term securities.

Question

Quizplus · Accepted Answer

Prior to 2008, open market operations only involved buying and selling short-term Treasury securities to affect the market for bank reserves and control the federal funds rate. Long-term securities were not typically utilized in these operations.

Which of the Following Is NOT an Accurate Description of Open