Question

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

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

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 federal budget proposed by the president
decreasing the federal budget proposed by the president

Answer 1

"Buying securities to put more money into the economy" — open market operations are the Fed buying or selling government securities to increase or decrease the money supply.