What is the meaning of open market operations?

Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the Federal Open Market Committee, in order to influence the volume of money and credit in the economy. Purchases of government securities inject reserves into the depository system and foster expansion in money and credit; sales have the opposite effect.' open market operations' are the Federal Reserve's most important and flexible monetary policy tool.

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APABarry Goldsmith. (2010). open market operations. Retrieved September 21, 2026, from http://smartdefine.org/open_market_operations/definitions/1159684
ChicagoBarry Goldsmith. 2010. "open market operations" http://smartdefine.org/open_market_operations/definitions/1159684 (accessed September 21, 2026).
HarvardBarry Goldsmith 2010, open market operations, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/open_market_operations/definitions/1159684>.
MLABarry Goldsmith. "open market operations" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/open_market_operations/definitions/1159684>