Ask Question
BusinessBusiness
17 January, 08:28

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?

+4
Answers (1)
  1. 17 January, 08:51
    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 you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Matlock Company uses a perpetual inventory system. Its beginning inventory consists of 54 units that cost $37 each. During June, (1) the company purchased 162 units at $37 each, (2) returned 6 units for credit, and (3) sold 135 units at $54 each.
Answers (1)
In March 2015, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, DMF promised to repay the owner of one of these securities $2,000 in March 2040, but investors would receive nothing until
Answers (1)
An account becomes uncollectible a. when an account receivable is converted into a note receivable b. There is no general rule for when an account becomes uncollectible. c. when a discount is availed on notes receivable d.
Answers (1)
Abey Kuruvilla, of Parkside Plumbing, uses 1,220 of a certain spare part that costs $26 for each order, with an annual holding cost of $25.
Answers (1)
Susan recently quit working for a local firm and has yet to find a new job. She knows she can maintain her health insurance from her old employer due to COBRA.
Answers (1)
New Questions in Business
In October 2010, the amount of money held by individuals and companies was $893.4 billion; checkable deposits owned by the same individuals and companies were $345.6 billion; money market funds were $1.9423 trillion; savings deposits were $989.
Answers (2)
A monopolist that practices perfect price discrimination a. creates no deadweight loss. b. charges one group of buyers a higher price than another group, such as offering a student discount. c.
Answers (1)
What is the best way to show a business you're interested in their job position
Answers (1)
It doesnt matter what your goal is. any idea you may create is achievable. true or false
Answers (1)
What is a system for ordering items that have little or no value at the end of a sales period? a. single-period inventory model b. rop c. production order quantity model d. eoq?
Answers (1)
Home » Business » 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?
Sign Up Forgot Password?