The Fed can change the money supply more quickly by using open market operations as compared to discount policy.

Question

Quizplus · Accepted Answer

Open market operations involve buying or selling government securities in the open market, which can affect the money supply quickly and easily. Discount policy involves lending money to banks at a discount rate, which can take longer to affect the money supply. Therefore, the statement is true.

The Fed Can Change the Money Supply More Quickly by Using