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The most common money market instrument utilized in the Fed's open market operations is
Member Banks
Banks that are part of a central bank system like the Federal Reserve System in the United States and are subject to its regulations and have access to its services.
Secondary Reserves
Assets that can be quickly converted into cash without losing value but are not held as cash, used by banks to meet short-term needs.
Government Securities
Financial instruments issued by the government to borrow money from investors, which typically include bonds, bills, and notes.
High-risk Investments
Investments with a greater potential for loss or significant fluctuation in value, often offering the possibility of higher returns.
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