Open-market operations relates to which of the following? changes in reserve requirements purchases and sales of us government securities loans to banks all of the above none of the above

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Open-market operations relates to which of the following?

changes in reserve requirements

purchases and sales of us government securities

loans to banks

all of the above

none of the above

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Step 1

Open-market operations(OMOs) refers to monetary tool where the Fed indulge in buying or selling of government(G) securities like bonds which causes shift in money supply(MS). The reserve-requirements is the minimum amount set by the Fed that must be held as reserves by the commercial bank.

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