Question

​____________ are intended to change the level of reserves and the monetary base.

A. Open market sales
B. Defensive open market operations
C. Dynamic open market operations
D. Open market purchases

Answer 1

The Correct Answer is C.

Step-by-step explanation:

• Dynamic open market operations are created to upset the status of the Que and interest rates are changed and credit condition to a level the fed believed to be more stable with its economic targets.
• Dynamic open market operations made deliberately change the course of economic activity.
• Dynamic open market operations designed to change policy.

Answer 2

The correct answer is c) Dynamic open market operations

Step-by-step explanation:

Dynamic open market operations are transactions to reach the target federal funds rate as directed FOMC and also, are intended to change the level of reserves and the monetary base