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11 April, 13:34

Which statement best describes how the Fed's use of open market operations affects banks?

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  1. 11 April, 13:47
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    The statement that best describes how the Fed's use of open market operations affects banks is the following one:

    It affects banks' liquidity.

    Liquidity refers to money available in a bank - so the open market system has an impact on the availability of these assets in banks.
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