Question

Choose the best word or phrase from each drop-down menu.

Answer 1

Answer:

The Fed uses open market operations by buying and selling Government securities.(Money obtained to carry out day to day governmental operations)

The rate at which banks lend money and charge one another for storing money in the Fed is known as the fed fund rate.  (It is a tool used by banks to manage their reserves )

When the Fed carries out open market operations to lower the Federal Funds Rate, the money supply and available  credit will likely increase.

Answer 2

The correct answer is Government securities; fed fund rate; increase

 

Public bonds are issued by the National Treasury to finance the activities of the Federal Government. Those who invest in government bonds are buying government debt securities. They are fixed income assets, that is, they have a projectable income before investment.

These fees can be fixed in advance (an exact amount defined at the time of. This fund is fed by banks.

Enlarge or make bigger, more intense, more voluminous, of a greater degree, of greater proportion or greater dimension: increase the supply.