defensive open market operations
Definition
Strategies used in open market operations in order to offset other anticipated market conditions that would probably affect the level of funds in the economy. For example, if a foreign country is expected to sell its US treasury securities holdings in exchange for US dollars, the Federal Reserve may decide to buy treasury securities in advance in order to maintain the same level of US dollars.
Use this term in a sentence
“ You should try to make sure that you have some good defensive open market operations that you can use when you need. ”
“ Their defensive open market operations were working very well and I thought they had a really good strategy for themselves. ”
“ The defensive open market operations was a responsive strategy to combat the potential decisions and transactions of powerful market players. ”
