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inna [77]
3 years ago
14

In "open market operations" to __________ M1, the securities held by a commercial bank (or the public) are exchanged for "cash"

from the Fed (the transfer of funds from the Fed to a bank)..A. reduceB. restrainC. expandD. none of the above
Business
1 answer:
Hoochie [10]3 years ago
4 0

Answer:

expand

Explanation:

In "open market operations" to expand M1, the securities held by a commercial bank (or the public) are exchanged for "cash" from the Fed (the transfer of funds from the Fed to a bank.

The Fed buys securities from banks holding it, for money; so as to increase the supply of money in the economy.

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