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

Question

Quizplus · Accepted Answer

The Open Market Trading Desk at the Federal Reserve Bank of New York conducts its operations over-the-counter electronically with private securities dealers, rather than through physical exchanges or through the U.S. Treasury. This allows for efficient and direct control of the money supply through the buying and selling of government securities.

How Does the Open Market Trading Desk Conduct Its Operations