The most important tool the Fed uses to conduct monetary policy is open market operations (OMOs), a tool controlled by the Federal Open Market Committee (FOMC). A. Explain what OMOs are. (2 points)
B. Explain how OMOs affect the money supply. (4 points)
C. What type of OMO is consistent with expansionary policy? With contractionary policy? (2 points)
D. Show the effects of OMOs on graphs of money and bond markets to establish the relationship between interest rates and bond prices. (6 points)

Quick calculate the roi dollar amount and percentage for these example investments. a. you invest $50 in a government bond that says you can redeem it a year later for $55. use the instructions in lesson 3 to calculate the roi dollar amount and percentage. (3.0 points) tip: subtract the initial investment from the total return to get the roi dollar amount. then divide the roi dollar amount by the initial investment, and multiply that number by 100 to get the percentage. b. you invest $200 in stocks and sell them one year later for $230. use the instructions in lesson 3 to calculate the roi dollar amount and percentage. (3.0 points) tip: subtract the initial investment from the total return to get the roi dollar amount. then divide the roi dollar amount by the initial investment, and multiply that number by 100 to get the percentage.