Open market operations take place when the central bank sells or buys U.S. Treasury securities in order to influence the quantity of bank reserves and the level of interest rates.
The Federal Reserve's open market operations (OMOs)—the purchase and sale of securities in the open market by a central bank—are a key tool in the implementation of monetary policy. The Federal Open Market Committee establishes the short-term goal for open market operations.
What are some examples of open market operations?
Learn more about open market operations (OMOs) to visit this link
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