0
open market sale of bonds is retractionary monetary policy and lowers the money supply, this raises the interest rate.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
When the Fed buys government bonds and other securities on the open market?
Open-market operations
The fed buys 5 billion worth of treasury bonds on the open market what effect does this have on the money supply?
The Fed sells $5 billion worth of Treasury bonds on the open market.
In which three ways does the Fed manage the country's money supply?
-open-market operations (purchase or sale of government securities) -change the discount rate -change reserve requirements
An open air market with shops and goods for sale?
Bazaar Your welcome
Which best describes the use of open market operations to influence the money supply?
The Fed buys and sells Treasury bonds in the bond market.
Fed participation in open market activities?
what is the federal partcipation in open market activities??
When the Fed buys government bonds and other securities on the open market?
Open-market operations
The fed buys 5 billion worth of treasury bonds on the open market what effect does this have on the money supply?
The Fed sells $5 billion worth of Treasury bonds on the open market.
In which three ways does the Fed manage the country's money supply?
-open-market operations (purchase or sale of government securities) -change the discount rate -change reserve requirements
What and the Federal Open Market Committee oversee the operation of the Fed?
board of governers
An open air market with shops and goods for sale?
Bazaar Your welcome
What is the major policy making group within the fed?
FOMC (Federal Open Market Committee)
Which best describes the use of open market operations to influence the money supply?
The Fed buys and sells Treasury bonds in the bond market.
What is the third method the Board of Governors uses to control monetary policy?
Open-market operations (the purchase and sale of U.S. government securities in the open market).
Why in order to reduce the money supply the Fed might sell securities in the open market operations?
Because that is how FED removes money from circulation, thus reducing money supply. The opposite would be buying securities in open market operations in order to increase money supply.
What is a tool used by the Federal Reserve to influence the volume of money in the economy by buying and selling government securities?
Federal Open Market Committee [FOMC] decides Fed's open market operations. Any of the two alternative tools can be used by Fed viz., Setting the growth rate of the money supply or setting the short term interest rate.
What is the Fed's most powerful tool for influencing monetary policy?
By and large, open-market operations comprise the most powerful tool the Fed has to influence monetary policy.
