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Whitepunk [10]
2 years ago
13

Open-market operations involve _____ and _____ securities to influence the money supply.

Business
2 answers:
Akimi4 [234]2 years ago
8 0
Open market operations involve buying and selling securities to influence the money supply. The correct answer is C. 
shepuryov [24]2 years ago
3 0

Correct answer:  C. buying and selling

The securities that are being bought and sold are government securities.  Government securities are bonds or other financial certificates sold by the government.  As <em>Investopedia </em>explains in regard to "open market operations," the purchase of government securities brings money into the banking system, stimulating growth by stimulating the money supply.  The selling of government securities does the opposite, contracting the economy.   The Federal Reserve uses  open market operations to adjust and monitor the federal funds rate -- in other words, the interest rate at which banks borrow from each other.

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