The primary policy tool used by the Fed to meet its monetary policy goals is

Question

Quizplus · Accepted Answer

Open market operations involve the buying and selling of government securities (such as Treasury bonds) in the open market. By buying securities, the Fed injects money into the economy, which can stimulate lending and economic growth. By selling securities, the Fed can reduce the money supply and help control inflation. This tool is the most commonly used by the Fed to achieve its monetary policy goals.

The Primary Policy Tool Used by the Fed to Meet