When conducting an open-market sale, the fed:______.
a. buys government bonds, and in so doing decreases the money supply.
b. sells government bonds, and in so doing increases the money supply.

The purchasing or selling of shares in a corporation by insiders is referred to as an open-market transaction. An insider must file the necessary papers with the SEC before engaging in an open-market transaction in order to comply with insider trading regulations.

By exchanging bonds for cash from the general public and purchasing bonds on the open market, the Fed boosts the amount of money in circulation in the economy. On the other hand, by withdrawing cash from the economy in exchange for bonds when the Fed sells bonds, it reduces the money supply.

Thus, The best choice is B. The Fed boosts the amount of money in circulation by selling government bonds during an open-market sale.

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When conducting an open-market sale, the fed:______. a. buys government bonds, and in so doing decreases the money supply. b. sells government bonds, and in so doing increases the money supply.

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What is an open market sale?

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When conducting an open-market sale, the fed:______.
a. buys government bonds, and in so doing decreases the money supply.
b. sells government bonds, and in so doing increases the money supply.