The tool of monetary policy with which the Federal Reserve buys and sells government bonds is called:

Question

Quizplus · Accepted Answer

Open-market operations refer to the buying and selling of government bonds by the Federal Reserve, which is a primary tool of monetary policy. This tool allows the Fed to influence the money supply and interest rates in the economy, and it is considered the most flexible and powerful tool available to the Fed.

The Tool of Monetary Policy with Which the Federal Reserve