A Fed purchase of gold,SDRs,a deposit denominated in a foreign currency or any other asset is just an open market ________ of these assets,________ the monetary base.

Question

Quizplus · Accepted Answer

A Fed purchase of any asset, including gold, SDRs, or foreign currency deposits, is considered an open market purchase. This action increases the monetary base by injecting more money into the banking system.

A Fed Purchase of Gold,SDRs,a Deposit Denominated in a Foreign