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

Question

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] · Answer 1 · 2022-08-17T15:27:52+03:00

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.