When the Fed wants to expand the money supply through open market operation, it
a. sells government securities to the Treasury.
b. sells government securities to member banks.
c. buys government securities from member banks.
d. buys government securities from the Treasury.
c
Economics
You might also like to view...
A contract that requires the investor to buy securities on a future date is called a
A) short contract. B) long contract. C) hedge. D) cross.
Economics
The feedback effect can be thought of as a type of
A) social regulation. B) economic regulation. C) creative response, which reduces the law's effectiveness. D) regulatory lag.
Economics