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Which best describes the use of open market operations to influence the money supply?
Wiki User
∙ 15y ago
The Fed buys and sells Treasury bonds in the bond market.
Wiki User
∙ 15y ago
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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 factors determine money supply?
factors which determine money supply is: open market operations, variable money supply bank rate policy.
Which of these describes a market economic system?
Economic decisions are based on supply and demand. A+
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.
How does the federal reserve buy and sell government securities?
This is called open market operations, they do this to increase the money supply, buy buying bonds or decrease the money supply by selling. They do this to control interest rates and inflation.
What factors will influence the supply of rice in the world market?
* change in population * government policies * income change * future expectations
The most important influence on supply is?
The answer choices for this question weren't provided. But the most important influence on supply is demand. Supply and demand is an economic model of price determination in a 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.
Open market operations are?
Open Market operations are the buying and selling of goverment securities ,so they may alter the supply of money. These are often used as a monetary policy tool.
What factors determine money supply?
factors which determine money supply is: open market operations, variable money supply bank rate policy.
Which of these describes a market economic system?
Economic decisions are based on supply and demand. A+
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 market in economic?
Market in Economic is based on supply and demand, and how it influence a business's investment, production and distribution decisions.
How does a market force come about?
A market force comes about by creating the supply for a specific demand. The supply and demand represent the influence of buyers and sellers on the price and quantity of the goods and services provided by the market.
What is the most-used instrument for controlling week-to-week changes in the money supply?
open market operations
What is the policy used most by the Fed to change the money supply?
interest rates
What is the best instrument for controlling week to week changes in the money supply?
Open market operations is the best instrument for controlling week-to-week changes in the money supply.
