When the Federal Reserve purchased large quantities of government securities to release more money into the economy, the Fed was

Question

Quizplus · Accepted Answer

When the Federal Reserve purchases government securities, it is engaging in open-market operations. This is one of the most common ways the Fed tries to stimulate the economy by injecting more money into circulation. The other answer choices (changing reserve requirements, adjusting the federal funds rate, and seizing private assets) are all actions that the Fed can take, but they are not directly related to the specific action of purchasing securities.

When the Federal Reserve Purchased Large Quantities of Government Securities