Question

All Fed purchases and sales of Select one: a. government bonds are conducted at the New York Fed's trading desk. b. corporate stocks and bonds are conducted at the New York Fed's trading desk. c. real estate and other real assets are conducted by the Federal Open Market Committee. d. All of the above are correct.

Answer 1

Answer: a. government bonds are conducted at the New York Fed's trading desk.

Step-by-step explanation:

The Federal Open Market Committee (FOMC) of the Fed has the responsibility to engage in appropriate Open Market Operations in order to effect the Fed's monetary policy.

The actual responsibility of the buying and selling these securities falls on the New York Fed. As a result, all Fed purchases and sales are done in New York by the New York Fed. This cements New York as the main financial services location for the government.