Open market operation


 

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Open market operation

The sale or purchase of government bonds by a central bank, in exchange for domestic currency or central-bank deposits. This changes the monetary base and therefore the domestic money supply, contracting it with a bond sale and expanding it with a bond purchase.

Open market operation

Purchase or sale of government securities by the monetary authorities to increase or decrease the domestic money supply.



Open market operation

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Funds From Operations (FFO)

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Operations department

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See: Back office.


Further Suggestions

Open market purchase operation
Discontinued operations
Organization for Economic Cooperation and Development (OECD)
Operational Definition


 
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