select the correct answer.\nwhat tool does the federal reserve use to influence the volume of money in the…

select the correct answer.\nwhat tool does the federal reserve use to influence the volume of money in the economy by buying and selling government securities?\na. personal income tax\nb. reserve requirement\nc. loose - money policy\nd. open - market operations

select the correct answer.\nwhat tool does the federal reserve use to influence the volume of money in the economy by buying and selling government securities?\na. personal income tax\nb. reserve requirement\nc. loose - money policy\nd. open - market operations

Answer

Brief Explanations:

The Federal Reserve uses open - market operations to buy and sell government securities to influence the money supply. Personal income tax is set by the government for revenue collection, not a Fed tool for money - volume influence. Reserve requirement is about the amount of funds banks must hold, not related to buying/selling securities. Loose - money policy is a general concept, not the specific tool of buying/selling securities.

Answer:

D. open - market operations