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Which of the following is NOT a way that the Fed uses the open market to control the money supply? To remove money from circulation,

Which of the following is NOT a way that the Fed uses the open market to control the money supply?

  • To remove money from circulation, the Fed sells U.S. Treasury securities for cash.
  • The Fed buys U.S. Treasury securities.
  • The Fed dictates the amount of money that banks must keep in their vaults.
  • The Fed gives bondholders cash in exchange for securities.

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