How to find the effect of government securities on money supply
Help Questions
AP Macroeconomics › How to find the effect of government securities on money supply
Questions 1 - 1
1
Which of the following are considered open-market activities?
Selling Government Bonds
Decreasing Taxes
Increasing Government Spending
Raising Bank Reserve Requirements
None of these would be considered Open Market Activities
Explanation
Selling Government Bonds would be considered open market activities. When the Federal Reserve wants to adjust interest rates, they conduct open market operations - which involves selling government bonds (which raises interest rates by decreasing the money supply) or buying government bonds (which lowers interest rates by increasing the money supply.)
AI TutorYour personal study buddy
Question of the DayDaily practice to build your skills
FlashcardsStudy and memorize key concepts
WorksheetsBuild custom practice quizzes
AI SolverStep-by-step problem solutions
Learn by ConceptMaster concepts step by step
Diagnostic TestsAssess your knowledge level
Practice TestsTest your skills with exam questions
GamesLearn through free games