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The Federal Reserve is:__________A) a primary purchaser of Treasury securities and an active participant in the secondary market for these issuesB) a primary purchaser of Treasury securities but not an active participant in the secondary market for these issuesC) not a primary purchaser of Treasury securities but an active participant in the secondary market for these securitiesD) not a primary purchaser of Treasury securities and not an active participant in the secondary market for these securities

Respuesta :

Answer: C

Explanation:

The Federal Reserve Board is not a primary buyer of Treasury securities but is an active participant in the secondary market for Treasury securities. The Federal Reserve Board is not a main purchaser of Treasury securities as it does not bid at the Treasury auction weekly where only primary dealers are entitled to bid. However, the Federal Reserve Board trades with them in the secondary market in order to influence the availability of credit.

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