Question

Choose the best word or phrase from each drop-down menu.
The Fed uses open market operations by buying and selling
.

The rate at which banks lend money and charge one another for storing money in the Fed is known as the
.

When the Fed carries out open market operations to lower the Federal Funds Rate, the money supply and available credit will likely
.

Answer 1

- U.S. Treasury (government) securities
- the federal funds rate
- increase (rise/expand)