defination of open market operations
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Open market operations refer to central bank purchases or sales of government securities in order to expand or contract money in the banking system and influence interest rates.
Let's understand the Open Market Operations Examples with the help of one more example: The Federal Reserve Bank (Central Bank of United States) purchased $175 million MBS from banks that had been originated by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.
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