The FOMC conducts open market operations, buying and selling government

securities.

True

False

The given statement, "The FOMC conducts open market operations, buying and selling government securities" is true.

Explanation:

The definition of 'open market' implies that the Federal does not decide its own bond dealers. Many securities dealers then participate in the lending market on the basis of value.

The FOMC establishes an interest rate goal for federal money and tries to reach this target through government securities buying or selling.

In order to achieve the inflation target, the Federal Reserve requires open market operations. Open market activities consist of government securities purchase or sale. The Fed owns government securities, from entities and banks, as well as other financial institutions including insurance and pension schemes.