The primary tool used by the Fed to achieve monetary policy goals is Open Market Operations.
What are Open Market Operations (OMO)?
- This refers to the trading of securities by the fed.
- Securities traded include bills, notes, and bonds.
When the fed wants to increase the money supply, they will buy these securities from the public. If it is a decrease they they seek, they will sell securities to the public.
In conclusion, this is Open Market Operations.
Find out more about Open Market Operations at https://brainly.com/question/14256204.
