Assignment Problem: The Federal Reserve System (FRS) uses speculative statements known as open mouth operations to influence interest rates and inflation, or rising prices in an economy.
Open mouth operations are when the Federal Reserve, also known as the central bank, tells exchanges where the preferred interest rates should be and does not take the action of selling or buying U.S. Treasury securities. These announcements are referred to as open mouth operations.
Show the Open Market Operations as a Result of Open Mouth Operations.