What is the tool commonly used by the Federal Reserve whereby it buys or sells U.S. Treasury bonds?
A. contractionary monetary policy
B. expansionary monetary policy
C. open market operations
D. tightening
An open market operation is the tool that is commonly used
by the Federal Reserve where they buy or sell U.S. treasury bonds. The purpose
of this tool is to expand or contract the amount of money being circulated in
the banking system.
