The Fed's purchases and sales of government securities are called:

Question

Quizplus · Accepted Answer

The Fed's purchases and sales of government securities are known as open market operations. These operations involve the buying and selling of U.S. government securities in the open market with the aim of influencing the money supply and interest rates. The other options, such as margin operations, small-dealer transactions, and intermediary transactions, do not accurately describe the Fed's actions in the open market.

The Fed's Purchases and Sales of Government Securities Are Called