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The Fed’s use of open market operations affects banks’


A) interest rates.
B) money available to lend.
C) lending practices.
D) stability.

Respuesta :

Ammimochi

The fed's use of open market operations affects bank's;

B) Money available to lend

The Federal Reserve uses the monetary policy to influence the amount of credit and money available in the economy of the country.

The Fed’s use of open market operations affects banks’ money available to lend.

What are open market operations?

Open market operations are when the government either increase or decrease the money supply in banks by either selling or buying bonds.

There are two type of open market operations:

  1. open market purchase: this is when the Fed buys bonds from the banks. This increases money available to lend.
  2. open market sales: this is when the Fed sells bonds to the banks. This reduces money available to lend.

To learn more about open market operations, please check: https://brainly.com/question/16260032

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