Question

Choose the best word or phrase from each drop-down menu.

The Fed uses open market operations by buying and selling
.

The rate at which banks lend money and charge one another for storing money in the Fed is known as the
.

When the Fed carries out open market operations to lower the Federal Funds Rate, the money supply and available credit will likely
.

Answer 1

that answer is correct

Step-by-step explanation:

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Answer 2

Answer: securities

Federal fund rate

Increase

Step-by-step explanation:

Open market operations simply has to do with the buying it the selling of securities by Federal Reserve so as to control the amount of money in circulation.

The Federal Reserve Rate simply refers to the rate at which money is being lent

by banks and also in charged by one another for storing money in the Fed.

When the Fed reduces the Fedral Reserve Rate, the available credit will increase