Open market operations directly change the rate of interest at which banks can borrow funds from the Fed.

Name: Open market operations directly change the rate of interest at which banks can borrow funds from the Fed.
Brand: Quizplus
Rating: 4.9 (42 reviews)

Question

Quizplus · Accepted Answer

Open market operations involve the buying and selling of government securities in the open market to control the supply of money, which indirectly influences interest rates, rather than directly changing the rate at which banks can borrow from the Federal Reserve.

Open Market Operations Directly Change the Rate of Interest at Which