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11 Dec 2019
If the Federal Open Market Committee decides to increase the money supply, then the Federal Reserve:
(i) sells government bonds from its portfolio to the public.
(ii) sells various types of stocks and bonds from its portfolio to the public.
(iii) creates dollars and uses them to purchase government bonds from the public.
(iv) creates dollars and uses them to purchase various types of stocks and bonds from the public.
If the Federal Open Market Committee decides to increase the money supply, then the Federal Reserve:
(i) sells government bonds from its portfolio to the public.
(ii) sells various types of stocks and bonds from its portfolio to the public.
(iii) creates dollars and uses them to purchase government bonds from the public.
(iv) creates dollars and uses them to purchase various types of stocks and bonds from the public.
Bunny GreenfelderLv2
25 Feb 2020