How does the Open Market Trading Desk conduct its operations?
A)Directly with government securities dealers on the floor of the New York Stock Exchange
B)Directly with government securities dealers on the floor of the Federal Reserve Bank of New York
C)Over-the-counter electronically with government securities dealers
D)By sending its buy and sell orders to the U.S. Treasury for execution

Question

Quizplus · Accepted Answer

The Open Market Trading Desk conducts its operations over-the-counter electronically with government securities dealers, rather than through physical exchanges or through the U.S. Treasury. This allows for efficient and direct transactions in the buying and selling of government securities as part of monetary policy operations.

How Does the Open Market Trading Desk Conduct Its Operations