If the Federal Reserve wished to decrease interest rates using open market operations it would

Question

Quizplus · Accepted Answer

To decrease interest rates, the Federal Reserve would want to increase the money supply. One way to do this is through open market operations, in which the Fed purchases U.S. government securities from banks and investors. This increases the amount of money in circulation and can lead to lower interest rates. Selling U.S. government securities would decrease the money supply and likely lead to higher interest rates. Buying gold or corporate stocks would not directly impact the money supply or interest rates.

If the Federal Reserve Wished to Decrease Interest Rates Using