__________ is an arrangement whereby the New York Fed agrees to buy securities from the securities dealers with whom it regularly does business, and the dealers agree to buy back the securities on a specific day in the near future.

Question

Quizplus · Accepted Answer

This describes a repurchase agreement, where the Fed purchases securities from dealers with the understanding that the purchase will be reversed on a specified future date. This is commonly used by the Fed to conduct open market operations and manage the money supply.

__________ Is an Arrangement Whereby the New York Fed Agrees