The power of the central banking system in the United States to buy and sell government securities to increase or decrease the supply of money in the economy is called

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The power of the Federal Reserve (the central banking system of the United States) to buy and sell government securities in order to increase or decrease the supply of money in the economy is known as open-market operations. This is a key tool used by the Fed to influence economic activity and manage inflation. Reserve requisitions, acquisition and divestiture functionality, federal funds adjustment, and quantitative easing are all related to the operation of a central bank, but none of them specifically refer to the power to buy and sell government securities for the purpose of monetary policy.

The Power of the Central Banking System in the United