Matched sale transaction - Mainly applies to convertible securities. Procedure whereby the Federal Reserve Bank of New York sells government securities to a non-bank dealer against payment in federal funds. The agreement requires the dealer to sell the securities back by a specified date, which ranges from one to 15 days. The Fed pays the dealer a rate of interest equal to the discount rate. These transactions, also called reverse repurchase agreements, decrease the money supply for temporary periods by reducing dealers bank balances and thus excess reserves.
Matched sale transaction : mainly applies to convertible securities. procedure whereby the federal reserve bank of new york sells government securities to a non-bank dealer against payment in federal funds. the agreement requires the dealer to sell the securities back by a specified date, which ranges from one to 15 days. the fed pays the dealer a rate of interest equal to the discount rate. these transactions, also called reverse repurchase agreements, decrease the money supply for temporary periods by reducing dealers bank balances and thus excess reserves.
Matched sale transaction