Discussion 11- Open Market Operations! Answer

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In carrying out open market operations, the Federal Reserve usually buys and sells U.S. Treasury securities. Suppose the U.S. government paid off all its debt.  Could the Federal Reserve continue to carry out open market operations? Please explain. 

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Grading Rubric 

Some Rubric (1)

Criteria

Ratings

Pts

Professionalism:

Proper grammar, spelling, citations, sources, good organization, readability, clear articulation of ideas, correct use of templates, etc.

10 pts

Exceeding Standard

8 pts

Meeting Standard

5 pts

Below Standard

0 pts

No Marks

10 pts

Thoroughness

Follows instructions; response is well-researched and articulate; appropriate length; addresses all prompts and assignment criteria; thoughtful analysis

10 pts

Exceeding Standard

8 pts

Meeting Standard

5 pts

Below Standard

0 pts

No Marks

10 pts

Progression:

Incorporates feedback and suggestions from instructor and peers; demonstrates continuous improvement

10 pts

Full Marks

8 pts

Meeting Standard

5 pts

Below Standard

0 pts

No Marks

10 pts

Total Points: 30

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The Federal Reserve of the United States uses open market operations

This question is taken from BUSAD 135 – Money and Banking » Spring 2022 » Discussion