The economic tool used by the Federal Reserve whereby it buys or sells U. S. treasury bonds is called what?

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Irene Mccoy

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The economic tool used by the Federal Reserve whereby it buys or sells U. S. treasury bonds is called what?

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Anabella Jackson · Answer 1

The economic tool used by the Federal Reserve whereby it buys or sells U. S. Treasury bonds is called: Open market Operation

In an open market Operation, the government Could sell their securities on the stock market in order to reduce the amount of money that exist in the market. This operation is usually enacted to lower inflation rate.