When the Fed engages in open market operations,it is buying or selling
A)capital equipment.
B)U.S.government securities newly issued by the U.S.Treasury.
C)U.S.government securities.
D)loans made to banks to meet the legal reserve requirement ratio.
E)gold.

Question

Quizplus · Accepted Answer

Open market operations refer to the buying and selling of government securities by the Federal Reserve. Therefore, the correct answer is (C) U.S. government securities.

When the Fed Engages in Open Market Operations,it Is Buying