In an open market operation (OMO), the Fed sells $75 million worth of Treasury bonds to the public.

In an open market operation (OMO), the Fed sells $75 million worth of Treasury bonds to the public. Assume that the reserve requirement is 10%, and that all banks want to keep 2% of their deposits as excess reserves. 

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *