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20 September, 21:38

The chairman of the federal reserve board can accelerate economic activity by lowering interest rates. what primary method does the federal reserve use to accomplish this?

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  1. 20 September, 21:53
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    The answer is Open market operations (OMO). The main purpose of open market operations is - to take hold of the short-term interest rate and the supply of base money in an economy. other from supplying commercial banks with liquidity and sometimes getting a surplus liquidity from commercial banks-Open market operations (OMO) meaning the buying and selling of government securities in the open market in order to prolong or contract the amount of money in the banking system.
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