Quantcast

Matched Sale Purchase Transactions

Definition:

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.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Life expectancy

The length of time that an average person is expected to live, which is used by insurance companies use to make projections of benefit payouts.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!





Create your free portfolio




Investing Tools

stock screener icon
Stock Screener

Find opportunities in the market using criteria based on 145 data elements.

portfolio tracker icon
Portfolio Tracker

Create a portfolio of selected assets that are updated dynamically intraday.

guru icon
Guru

Evaluate stocks that meet the investment criteria of the greatest investors.