The Fed uses open market operations to impact:

Question

a. the price of stocks.
b. the price of gold.
c. interest rates.
d. the amount of dollars outside of the United States.

Answer 1

c. interest rates.

The Federal Reserve (the Fed) uses open market operations primarily to influence short-term interest rates and the overall monetary policy in the economy. By buying or selling government securities, the Fed can increase or decrease the money supply, which in turn affects interest rates.