answersLogoWhite

0

An open market policy can be used to stimulate the economic activity by increasing the money supply, lowering the interest rates and the change in reserve banks.

User Avatar

Wiki User

12y ago

What else can I help you with?

Related Questions

What are the three tools the Fed uses to keep the economy stable?

Open market operations, discount rates, and reserve requirements.


When the Fed buys government bonds and other securities on the open market?

Open-market operations


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.


As chairperson of the Federal Reserve, you are worried that the economy is facing a downturn List the many actions you can take using the Federal Reserve?

Use open-market operations


Open market operations is the instrument of?

Monetary Policy


What type of economy Croatia have?

a service bassed open market economy


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.


How might the federal reserve to an overheated economy or boom?

The Federal Reserve respond to an overheated economy or boom by selling bonds in the open market.


The Federal Reserve's procedure of purchasing or selling government bonds is an example of?

open-market operations


What are the key differences between quantitative easing and open market operations in terms of their impact on the economy and financial markets?

Quantitative easing involves central banks buying long-term securities to increase money supply and lower interest rates, aiming to stimulate economic growth. Open market operations involve central banks buying or selling short-term securities to adjust the money supply and influence interest rates. Quantitative easing has a broader impact on the economy and financial markets compared to open market operations, as it directly targets long-term interest rates and can have a more significant effect on asset prices.


Is Haiti a free market economy or a command economy?

Yes, Haiti is a command economy. A command economy is when the government controls the economy and you are guaranteed a job. However, with a command economy, you cannot open your own business.


What has the author Dieter Weiss written?

Dieter Weiss has written: 'The economics and politics of transition to an open market economy Egypt' -- subject(s): Open market operations, Economic conditions 'EU-Arab development cooperation scenarios and policy options' -- subject(s): Foreign economic relations, Congresses