1) The Fed conducts most of its open market operations in Treasury securities because the market for these securitiesĥ) Open market purchases raise the _ thereby raising the _.Ī) money multiplier money supply B) money multiplier monetary baseĬ) monetary base money supply D) money base money multiplierġ0) Open market sales _ reserves and the monetary base thereby _ the _.ġ5) The Fed's most commonly used means of changing the money supply isĭ) changes in the Regulation Q ceiling rate.Ģ0) If the Fed wants to temporarily drain reserves from the banking system, it will engage inĪ) a repurchase agreement.
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