3 Tutorials that teach Open market operations
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Open market operations

Open market operations

Author: Dan Laub
This lesson covers the Open market operations
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Introduction to Psychology

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Notes for "Open Market Operations"


Key Terms



The narrowest definition of money, includes only the stock of physical currency.



Includes demand deposits (checking account balances) + M0 (stock of physical currency).



Time deposits + M1 (demand deposits + stock of physical currency).


Open-market Operations

One of the mechanisms available to the Fed to regulate interest rates and the money supply; open market operation refer to the purchase and sale of U.S. Treasury securities.