The Federal Open Market Committee is the part of the Federal Reserve System that is responsible for making monetary policies. It is made up of five Reserve Bank presidents and the Board of Governors. Most of their work involves adjusting interest rates based on the economy.
To add more to this summary, the FOMC establishes policy regarding domestic open market operations. It oversees these operations and is authorized to purchase and sell US Government securities. The FOMC may also lend US government securities. The FOMC is a diversified part of the Federal Reserve Bank of New York, and has a complexity of other responsibilities in order to maintain liquidity in financial markets.
An open market operation is an activity by a central bank to buy or sell government bonds on the open market. In other words, the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system is known as Open Market Operation. Purchases inject money into the banking system and stimulate growth while sales of securities do the opposite. A central bank uses them as the primary means of implementing monetary policy. The usual aim of open market operations is to control the short term interest rate and the supply of base money in an economy, and thus indirectly control the total money supply. This involves meeting the demand of base money at the target interest rate by buying and selling government securities, or other financial instruments. Monetary targets, such as inflation, interest rates, or exchange rates, are used to guide this implementation.
monetary policy is the instrument of OMO.
to prevent monopolies and collusion (plato)
In a free enterprise (market) economy, the expected role of the government is to allow free operation of the market unless market failure occurs at which point it intervenes to prevent welfare losses.
The role of capital market to Nigerian economy is to mobilize long-term funds. To provide a mechanism for mobilizing private and public savings and makes such funds available for productive purposes.
open market operation is the most important operation or tool to control the supply of currency in circulation.when federal reserve buy the govt securities from bank or public it means that to increase the liquidity in economy and when sell for mop up the liquidity from market to shrink the economy.
rbi
open-market operations
offer commercial banks more credit in the open market.
monetary policy is the instrument of OMO.
board of governers
Open Market operations are the buying and selling of goverment securities ,so they may alter the supply of money. These are often used as a monetary policy tool.
monthly audits & use open-market operation.
by coducting open market operation.
to prevent monopolies and collusion (plato)
Operation Market Sweep happened on 2004-01-13.
Operation Market Garden happened on 1944-09-25.
Operation New Market happened on 2005-05-25.