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Business, 30.05.2020 19:59 battlemarshmell

An open market operation is . A. an exchange between a private bank and the Federal Reserve where the Fed buys or sells government bonds to private banks. B. where a bank borrows reserves or bonds from the Federal Reserve's discount window. C. an exchange between private banks where the banks buy or sell bonds to each other. D. the process of selling Fed-issued IOUs between banks. The Federal Reserve conducts open market operations when it wants to . A. change the level of reserves it holds for banks. B. influence the discount rate. C. change the liquidity levels of banks. D. influence the federal funds rate. When the Fed buysbuys government bonds fromfrom private banks, it ▼ decreases maintains increases the electronic reserves that banks hold. Click to select your answer.

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