What you’ll learn to do: explain the mechanism by which open market operations affect the money supply and interest rates

In this section, we will see how the Federal Reserve changes bank reserves in order to change interest rates.

LEARNING ACTIVITIES

The learning activities for this section include:

• Reading: Monetary Policy and Interest Rates
• Self Check: Open Market Operations

Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.