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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?

  • The Federal Reserve Bank (Central Bank of United States) purchased $175 million MBS from banks originated by Fannie Mae. read more, Freddie Mac, and the Federal Home Loan Banks. ...
  • As the Fed's short-term treasury bills matured, it used the proceeds to buy long-term Treasury notes

Learn more about open market operations (OMOs) to visit this link

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