Open market operations are

Question

Quizplus · Accepted Answer

Open market operations refer to the process by which the Federal Reserve buys or sells existing government securities in the open market to influence the money supply. This is one of the main tools that the Fed uses to implement monetary policy. By buying government securities, the Fed injects money into the economy, increasing the money supply, and by selling government securities, the Fed withdraws money from the economy, decreasing the money supply.

Open Market Operations Are