3 Tutorials that teach Open market operations
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Open market operations

Open market operations

Author: Colton Cranston
This lesson covers the Open market operations
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Introduction to Psychology

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Open Market Operations

Source: Images by Video Scribe, License Held by Colton Cranston

Notes on "Open Market Operations"

Key Terms

  • M0
  • The narrowest definition of money, includes only the stock of physical currency.
  • M1
  • Includes demand deposits (checking account balances) + M0 (stock of physical currency).
  • M2
  • 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.