If the Federal Open Market Committee wants to decrease the money supply through open market operations it will

Question

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Selling U.S. Treasury Securities in the open market reduces the amount of money available in the economy and effectively decreases the money supply. Buying Treasury Securities would have the opposite effect of increasing the money supply. Adjusting the discount rate would directly affect banks borrowing from the Federal Reserve and would have an indirect impact on the money supply. However, this is not an open market operation, so option B is the best choice for decreasing the money supply through open market operations.

If the Federal Open Market Committee Wants to Decrease the Money