open market operations
Not what you're looking for?
Could the Federal Reserve conduct monetary policy through the purchase and sale of stocks on the New York Stock Exchange?
Do you see any possible drawbacks to such a policy?
Suppose the Federal Reserve purchased gold or foreign currency. How would this purchase affect the domestic money supply?
Purchase this Solution
Solution Summary
This discusses the open market operations
Solution Preview
These policies can be covered in the open market operations. Generally federal reserve does not interfere in the operations of the capital markets that is stock market. If they will do such thing than that will be seen as extreme step and may create panic in the market. Thus it should not resort to this measure.
Basically the federal reserve should deal in government securities. They can also deal in purchase of gold or foreign currency. ...
Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.