When the Federal Reserve conducts purchases and sales of securities on behalf of foreign central banks these are known as:
A) Accommodating transactions
B) Agency operations
C) Foreign dealer transactions
D) Surrogate open-market operations
E) None of the above

Question

Quizplus · Accepted Answer

When the Federal Reserve conducts purchases and sales of securities on behalf of foreign central banks, these activities are referred to as Agency operations. This is part of the services the Federal Reserve offers to international clients, including foreign central banks, to facilitate their transactions in the U.S. securities markets.

When the Federal Reserve Conducts Purchases and Sales of Securities