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Matched Sale Purchase Transactions

Definition: [crh] Transcations in which the Federal Reserve sells a government security to a dealer or a foregin central bank and agrees to buy back the Definition: 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 bankDefinition: s to make new loans and investments.

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