You read an article in the paper that stated the Federal Reserve Bank sold $500 million of government securities on Tuesday of last week. When the Fed did this they were controlling the money supply by using which of the following tools?:

1) discount rate
2) open market operations
3) reserve requirements ratio
4) risk
5) unable to tell with the information provided

Answer rating: 100% (QA)

2 open market operations Open market operations OMOsthe purcha... View the full answer