Firms that participate in regular open market transactions with the US Federal Reserve are called
A)secondary market banks.
B)Treasury banks.
C)primary dealers.
D)Federal Reserve partners.
E)reserve banks.

Question

Quizplus · Accepted Answer

Firms that participate in regular open market transactions with the US Federal Reserve are called primary dealers. These firms are authorized to trade US government securities with the Federal Reserve in order to implement monetary policy. They are typically large commercial or investment banks.

Firms That Participate in Regular Open Market Transactions with the US