The Federal Open Market Committee (FOMC) is a key committee within the Federal Reserve System responsible for setting short-term monetary policy in the United States. The FOMC is instrumental in regulating the money supply and influencing economic conditions to achieve sustainable economic growth.
A General Obligation Bond (GO Bond) is a type of municipal bond backed by the full faith and credit of the issuing government, which has the authority to levy taxes to repay bondholders.
Government securities are debt instruments issued by a government to support government spending and obligations. These securities include Treasury bills, bonds, notes, and savings bonds, all of which are considered highly creditworthy due to the backing of the government's 'full faith and credit.'
Marketable securities are assets on a corporation's balance sheet that can be readily converted into cash, reflecting their liquidity. They include government securities, banker's acceptances, and commercial paper.
A Money Market Fund is an open-ended mutual fund that invests in short-term, highly liquid and safe securities, providing investors with money market rates of interest. The net asset value generally remains constant at $1 per share, while the interest rate varies.
Open-Market Operations (OMO) are activities conducted by the securities department of the Federal Reserve Bank of New York, often referred to as the 'Desks', under the direction of the Federal Open Market Committee (FOMC). These operations involve the buying and selling of government securities to regulate the money supply within the economy.
A repurchase agreement (repo) is a form of short-term borrowing for dealers in government securities, involving the sale of securities with an agreement to repurchase them at a higher price.
A repurchase agreement, or repo, is a form of short-term borrowing for dealers in government securities. The dealer sells the government securities to investors, usually on an overnight basis, and buys them back the following day.
The trading desk at the New York Federal Reserve Bank is the operational arm of the Federal Open Market Committee (FOMC), responsible for executing all transactions undertaken by the Federal Reserve System in the money market and government securities market. It also serves as the Treasury Department's monitor and handles foreign exchange market transactions.
A U.S. government promissory note issued by the U.S. Treasury with a maturity period of up to one year. T-Bills are sold at a discount to face value, which is paid out at maturity, providing interest income to the investor.
Direct government obligations, comprising debt issues of the U.S. government, including Treasury bills, notes, bonds, and Series EE, Series HH, and Series I savings bonds, as distinct from government-sponsored agency issues.
A War Loan refers to government-issued securities distributed during wartime to raise funds for war efforts. These loans typically carry a fixed interest rate and traditionally do not have a redemption date.
