Question

Which statement is the best example of the Federal Reserve employing open market operations?(1 point)
Responses

buying more commercial banks
buying more commercial banks

buying securities to put more money into the economy
buying securities to put more money into the economy

decreasing the salaries of federal workers
decreasing the salaries of federal workers

decreasing the federal budget proposed by the president

Answer 1

The best example of the Federal Reserve employing open market operations is **"buying securities to put more money into the economy."** This action involves the purchase of government securities, which increases the money supply by providing banks with more reserves, thereby enabling them to lend more to businesses and consumers.