The correct option is B. When the Fed makes open-market purchases this leads to the supply of money increasing.
An insider's order to purchase or sell shares by the SEC's rules and guidelines is simply referred to as an "open-market transaction." Because the insider is willingly purchasing or disposing of shares at or near market value, an open market order is significant.
When the Federal Reserve buys government securities on the open market, it lowers interest rates overall, boosts the reserves of commercial banks, enables them to increase loans and investments, and raises the price of government securities, effectively lowering interest rates on those securities.
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