Matched Sale Purchase Transactions
Transcations in which the Federal Reserve sells a government security to a dealer or a foregin central bank and agrees to buy back the security to a dealer or a foreign central bank and agrees to buy back the security on a specified date (usually within seven days) at eh same price (the reverse of a repurchase agreement). Such transaction allow the Federal Reserve to temporarily absorb excess reserves from the banking system, limiting the ability of banks to make new loans and investments.
Nearby TermsMatched maturities Matched orders Matched Sale Purchase Transactions Matched sale transaction Match-fund
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University