Asked by robin singh on Jun 12, 2024
Verified
Which statement is true?
A) The Fed can induce people to buy United States government securities,but it can't induce them to sell.
B) The Fed can induce people to sell United States government securities,but it can't induce them to buy.
C) The Fed can induce people to buy and sell United States government securities.
D) The Fed cannot induce people to buy or sell United States government securities.
Induce
To lead or move by persuasion or influence, often to bring about or provoke a specific action or outcome.
Government Securities
Government securities are financial instruments issued by the government to finance its expenditures, offering a fixed return and including treasures, bonds, and bills.
- Gain insight into the approach the Federal Reserve takes to oversee the money supply.
Verified Answer
MP
minerva piedadJun 14, 2024
Final Answer :
C
Explanation :
The Fed can influence people to buy and sell government securities through various monetary policy tools such as open market operations, changes in interest rates, and reserve requirements. These tools affect the supply and demand for government securities, which can influence people's decisions to buy or sell them.
Learning Objectives
- Gain insight into the approach the Federal Reserve takes to oversee the money supply.
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