If the fed wants to maintain current interest rates, it would be buying government bonds in the open market when

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27-06-2022
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If the fed wants to maintain current interest rates, it would be buying government bonds in the open market when

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Tundexi Tundexi · Answer 1 · 2022-06-28T13:47:11+02:00

If there is need to maintain current interest rates, the Feds would buy government bonds in the open market when the demand for money increases.

What is a Open market operations?

This refers to the Federal Reserve practice of buying and selling the Treasury securities and other securities to influence money supply and interest rate.

Hence, when there is need to maintain current interest rates, the Feds would buy government bonds in the open market when the demand for money increases.

Read more about Open market operations

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