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Match the definition with the term provided.

Drag each term to the correct location.
(2 points)
The short-term purchase of securities
with a dealer for the Federal Reserve
to resell the securities at a later date.
The interest rate a bank charges to its
best customers.
The purchase and sale of treasury
and mortgage-backed securities with
dealers.
The interest rate the Federal Reserve
charges to banks for loans issued.
The funds a bank must hold against

User DeltaLima
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1 Answer

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Final answer:

The terms are defined in the response with examples to illustrate their meaning.

Step-by-step explanation:


Drag each term to the correct location.The short-term purchase of securities with a dealer for the Federal Reserve to resell the securities at a later date is known as open market operations.
The interest rate a bank charges to its best customers is called the discount rate.

The purchase and sale of treasury and mortgage-backed securities with dealers is referred to as open market operations.

The interest rate the Federal Reserve charges to banks for loans issued is known as the federal funds rate.


User Alican Temel
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