If the Federal Open Market Committee wants to decrease the money supply through open market operations it will A buy U.S. Treasury Securities. B sell U.S. Treasury Securities. C increase the discount rate. D decrease the discount rate.

If the Federal Open Market Committee wants to decrease the money supply through open market operations it will

A buy U.S. Treasury Securities.
B sell U.S. Treasury Securities.
C increase the discount rate.
D decrease the discount rate.

 

 

Answer:

option B

Bonds must be sold to decrease money supply.

Asked on February 15, 2018 in economics.
Add Comment
0 Answer(s)
  • Votes
  • Oldest

Your Answer

By posting your answer, you agree to the privacy policy and terms of service.