Question

The Fed’s use of open market operations affects banks’

Answer 1

Answer:The Federal use of open market operations affects banks' money available to lend.

]

Explanation:The Federal Reserve uses open market operations as a way to control the money that the banks will operate with. When the reserve needs to be increased the Federal Reserve buys more instruments, and they sell them in order to decrease it.

Answer 2

The Federal use of open market operations affects banks' money available to lend.

The Federal Reserve uses open market operations as a way to control the money that the banks will operate with. When the reserve needs to be increased the Federal Reserve buys more instruments, and they sell them in order to decrease it.