The purchase and sale of government bonds by the Fed for the purpose of altering bank reserves is referred to as:

Question

Quizplus · Accepted Answer

The purchase and sale of government bonds by the Fed for the purpose of altering bank reserves is known as open-market operations. This is a common tool used by the Fed to regulate the money supply and interest rates. Closed-market operations and discounting are not terms used in this context, and expansionary fiscal policy involves government spending and taxation rather than the Fed's actions with regards to bank reserves.

The Purchase and Sale of Government Bonds by the Fed