What tool does the Federal Reserve use to influence the volume of money in the economy by buying and selling government securities?

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anonymous · Answer

Federal Open Market Committee [FOMC] decides Fed's open market operations. Any of the two alternative tools can be used by Fed viz., Setting the growth rate of the money supply or setting the short term interest rate. http://www.answers.com/Q/Which_is_a_tool_used_by_the_Federal_Reserve_to_influence_the_volume_of_money_in_the_economy_by_buying_and_selling_government_securities