the buying and selling of government securities by the Federal Reserve in the open market to influence the money supply and interest rates. known as repurchase agreements because the bank will buy back the securities at some point in the future. by purchasing say T bonds from the banks, it puts more money into the hands of banks to lend out cash and stimulate the economy. If they want to tighten the money supply, they do reverse repos by selling securities to banks. Open market ops are the most common fed tactic.

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