What is a matched sale-purchase transaction (also known as a reverse repo)?
What will be an ideal response?
A matched sale-purchase transaction is when the Fed sells securities to primary dealers, and the dealers agree to sell them back to the Fed in the near future.
You might also like to view...
The circular flow of economic activity is a model of the: a. flow of goods, services, and payments between households and firms. b. influence of government on business behavior
c. role of unions and government in the economy. d. interaction among taxes, prices, and profits.
Both external and internal factors affect the operation of a multinational enterprise (MNE). External factors are outside the immediate control of the firm while internal factors are within the control of the firm. Give examples for both and discuss how they would affect the operations of the MNE.
What will be an ideal response?