Ask Question
3 August, 17:38

If the manager of the open market desk hears that a snowstorm is about to strike New York City, making it difficult to present checks for payment there and so raising the float, what defensive open market operations will the manager undertake?

+3
Answers (1)
  1. 3 August, 17:54
    0
    a defensive open market sale

    Explanation:

    The Trading Desk at the Federal Reserve Bank of New York is in charge of carrying on the short term objectives specified by the Federal Open Market Committee (FOMC). The Trading Desk engages in open market operations (OMO), which are the purchase and sale of Fed's securities.

    In this case, in order to lower the float, the Trading Desk should carry on a defensive open market sale which should temporarily lower the interest rate. Defense open market operations are designed to offset temporary fluctuations, they shouldn't affect overall monetary policy.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If the manager of the open market desk hears that a snowstorm is about to strike New York City, making it difficult to present checks for ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers