What tool does the Federal Reserve use to influence the volume of money in the economy by buying and selling government securities?

A.
personal income tax
B.
reserve requirement
C.
loose-money policy
D.
open-market operations

D

Explanation:

Open market operations are the main instrument used by the Federal Reserve to execute the monetary policy of the US. They consist on the sale or purchase of goverment securities to/from the banking system.

the authority to tax.

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