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What is the tool commonly used by the Federal Reserve whereby it buys or sells U.S. Treasury bonds?
open market operations
When you put your money in a fund and the investment company combines that money with the money of millions of other investors and buys stocks and bonds with it?
this is a mutual fund
What is an investor who buys a bond called?
The investor is the person, company or institution who puts up the cash to buy the sucurity. They run the risk that they are not paid the contractual payments (coupons and face value) as per the bond's details.
What is the role of a stock broker?
A stockbroker is a regulated professional individual, usually associated with a brokerage firm or broker-dealer, who buys and sells shares and other securities
What services does Forex Brokerage offer?
Forex Brokerage is a financial company that buys and sells financial securities, such as bonds and stocks. Clients of brokerage firms are usually investors.
What happens to the price level when the government buys bonds?
when the govt. performs open market operations, or puchases sercurities such as bonds, the price level increases.
Which best describes the use of open market operations to influence the money supply?
The Fed buys and sells Treasury bonds in the bond market.
What happens to the secondary market when the fed buys treasury bonds?
Prices tend to go up as demand has increased.
What best explains why the money supply is increased when the fed buys treasury bond?
When the Fed buys Treasury bonds, it increases the amount of deposits in people's bank accounts.The purchase of bonds increases the amount of deposits in people's bank accounts, which enables banks to loan more money
When the Fed buys government bonds the reserves of the banking system?
When the Fed buys government bonds, the reserves of the banking system
How can FED purchase bond while others are holding it..Shouldn't bond holders have the right to decide whether to sell their bonds or not?
The FED doesn't force people to sell, it just buys from willing sellers in the market.
What is the difference between dealer and dealership?
a dealership is a business that buys/sells automobiles. A dealer buys/sells automobiles for a dealership.
What is an art dealer?
An art dealer is a person who buys and sells paintings and/or sculptures.
Are banks the investors that the fed buys the bonds from?
Usually
The Federal Reserve never buys bonds?
false
What best explains why the money supply is increased when the Fed buys Treasury bonds?
When the Fed buys Treasury bonds, it increases the amount of deposits in people's bank accounts.The purchase of bonds increases the amount of deposits in people's bank accounts, which enables banks to loan more money
What happens to the records after a person buys a firearm?
The dealer is required to retain them for 20 years. If, at any point before the 20 years that dealer shuts down their business (or it is shut down), those records are turned into (or confiscated by) the BATFE.
