(Solved) In carrying out open market operations, the open market desk buys and sells US government securities on a daily basis. What type of securities
Question: In carrying out open market operations, the open market desk buys and sells US government securities on a daily basis. What type of securities – short term, intermediate, or long term – do you think it buys and sells the most? Locate the 3 rd chapter of the Federal Reserve publication "The Federal Reserve System: Purposes and Functions" at
http://www.federalreserve.gov/pf/pf.htm to find out. In terms of liquidity, why does the choice of this security type make sense with respect to the conduct of open market operations?
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