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

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

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

Answer 1

buying securities to put more money into the economy

Explanation: Open market operations are the Fed's buying and selling of government securities. Buying securities injects reserves into banks, increasing the money supply and usually lowering interest rates.