Open-market operations occur when the Federal Reserve:

Question

Quizplus · Accepted Answer

Open-market operations refer to the buying and selling of existing U.S. Treasury bills by the Federal Reserve in the open market. This is done with the aim of influencing the supply of money and credit in the economy to achieve the Fed's monetary policy objectives, such as controlling inflation or promoting economic growth. The other options (A, B, and D) involve transactions with the federal government or foreign entities and are not necessarily part of open-market operations.

Open-Market Operations Occur When the Federal Reserve