Federal Reserve Board

Start Your Free Trial

What are the advantages of Open Market Operations conducted by the Federal Reserve?

Expert Answers info

thetall eNotes educator | Certified Educator

calendarEducator since 2014

write1,737 answers

starTop subjects are Literature, History, and Business

Open Market Operations are among the tools available to the Federal Reserve for purposes of achieving the economy’s financial policy objectives. It works to ensure regulation of the economy by a single institution (the Fed) while limiting the influence by other institutions on the policy, thus in effect protecting the economy from the interests of these other institutions. The Federal Reserve is able to achieve this by creating money through purchasing government securities in the open markets, which increases money in the banks and in the general economy. This form...

(The entire section contains 2 answers and 292 words.)

Unlock This Answer Now


check Approved by eNotes Editorial

Related Questions

pohnpei397 eNotes educator | Certified Educator

calendarEducator since 2009

write35,413 answers

starTop subjects are History, Literature, and Social Sciences

check Approved by eNotes Editorial