What phrase best describes open market operations? A. The increasing or decreasing of the discount rate to influence the money supply. B. The buying and selling of Treasury securities to influence the money supply. C. The printing of more currency to add to the money supply. D. The production of more coins to add to the money supply.

Question

What phrase best describes open market operations? A. The increasing or decreasing of the discount rate to influence the money supply. B. The buying and selling of Treasury securities to influence the money supply. C. The printing of more currency to add to the money supply. D. The production of more coins to add to the money supply.

Answer 1

The phrase that best describes open market operations is:B. The buying and selling of Treasury securities to influence the money supply.Open market operations involve the buying and selling of government such as Treasury bonds, by a central bank to regulate the money supply in the economy. This is a key tool used by central banks to manage monetary policy and control inflation.

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