Question

How does the Open Market Trading Desk conduct its​ operations? A. by sending its buy and sell orders to the U.S. Treasury for execution B. overminustheminuscounter electronically with private securities dealers C. directly with private securities dealers on the floor of the New York Stock Exchange D. directly with private securities dealers on the floor of the Federal Reserve Bank of New York

Answer 1

Answer:

B. over the counter electronically with private securities dealers

Explanation:

• The open market operations are conducted by the trading desks at the federal reserve bank and the ranges of the securities include the federal reserves that are authorized to sell in relative limits.

• This involves the buying and selling of the self-government securities the markets are flexible and thus mostly used as a tool in the monetary policy.

• Over the counter involves the off exchange's trading that is done directly between the two parties and does not need the supervision of exchange and is a type of decentralized market.