Question

__________is the rate at which banks put their short term excess liquidity with the Centeral bank in exchange from investment security​

Answer 1

Answer:

In open operations, the Fed buys and sells government securities in the open market. If the Fed wants to increase the money supply, it buys government bonds. ... Conversely, if the Fed wants to decrease the money supply, it sells bonds from its account, thus taking in cash and removing money from the economic system.