Open market operations occur when _____.
A. municipal authorities bring out policies that provide better social security benefits.
B. the government improves the infrastructure of the economy to attract foreign investors.
C. the Federal Reserve buys or sells Treasury securities to expand or contract the U.S. money supply.
D. private companies establish agencies to trade their stocks in the market.
E. the public establishes a non-profit entity to trade in the market on behalf of the community.
Answer: C
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