Open_market Open_market

Open market - Definition and Overview

Related Words: Bazaar, Browse, Call, Campo, Commerce, Custom

In economics, the Open Market is the term used to refer to the environment in which bonds are bought and sold.

To intervene in the "business cycle", a central bank may choose to go into the open market and buy or sell government bonds, which is known as open market operations to increase reserves. Open Market Operations are when the central bank buys bonds from other banks in exchange for cheques. These local banks then cash the cheques, which allow them to take money from the central bank. This action thus decreases any credit the local banks may owe to the central bank, and also increases their money supply. This thus increases reserves.

See also

Example Usage of market

a20261: Early day @ work. stupid stock market.
eunergy: German electricity market: 11/11 Phelix Day Base: 41.21 €/MWh, Phelix Day Peak: 47.82 €/MWh
jrinteractive: Economy is down and it is a slow time of the year, but you can still market your brand in a down economy.... http://bit.ly/QVBDo
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