Economics The Federal Reserve System, known as the Fed, engages in monetary policy to help the economy grow without high inflation. One form of monetary policy is called “open market operations,” where the Fed buys and sells U.S. securities (Treasury notes, bills, and bonds).

Go to the Federal Reserve System’s website (www.federalreserve.gov)

to learn more about open market operations. Explain how this type of monetary policy helps the economy expand or contract (grow or shrink).