Matched sale transaction
Definition: [crh] Applies mainly to convertible securities. Procedure whereby the Federal Reserve Bank of New York sells governmeDefinition: nt securities to a nonbank dealer against payment in federal funds. The agreement requires the dealer to sell Definition: the securities back by a specified date, which ranges from 1 to 15 days. The Fed pays the dealer a rate of interest equal to the discount rate. These transactions, also called reverse repurchase agreements, decrease the money supply for temporary periods by reducing dealers' bank balances and thus excess reserves.
<< Go back