Asked by Carly Koncz on Apr 30, 2024
Verified
The Fed ____ bonds when it conducts an open-market purchase. This action _____ the money supply.
Open-Market Purchase
The buying of government securities by the central bank from the market to increase the money supply and decrease the interest rate.
- Learn about the core mechanisms and tools the Federal Reserve uses to manage the money supply.
Verified Answer
ZK
Learning Objectives
- Learn about the core mechanisms and tools the Federal Reserve uses to manage the money supply.