Definitions for "open market operation"
The buying and selling of government securities by a central bank, such as the...
The buying and selling of government securities├ÉTreasury bills, notes, and bonds├Ĺby the Federal Reserve.
One of the methods used by central banks, such as the Federal Reserve, to conduct monetary policy. It involves the purchase and sale of domestic government securities or other domestic assets by the central bank. This action alters bank reserves, which then affects the credit supply and monetary base. The change is then felt throughout the economy.