Discussion: Government Agency Securities

Business Finance

Through open-market operations, the Federal Reserve can purchase or sell, on either a temporary or permanent basis, U.S. government and agency securities with the objective of affecting the volume of reserves and the level of the federal funds rate.

In your initial post, compare the purchase and sale of government securities with the purchase and sale of agency securities. Include the effect of each program (purchase or sale) on the volume of reserves in the banking system and the federal funds rate.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *