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In economics
Economics

File:Ballard Farmers' Market - vegetables.jpgEconomics is the Social sciences that studies the Production theory basics, Distribution , and Consumption of Good and Service ....
, the open market is the term used to refer to the environment in which bonds
Bond (finance)

In finance, a bond is a debt security , in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest and/or to repay the principal at a later date, termed Maturity ....
 are bought and sold.

To intervene in the "business cycle
Business cycle

The term business cycle or economic cycle refers to economy-wide fluctuations in production or economic activity over several months or years, around a long-term growth trend....
", a central bank
Central bank

A central bank, reserve bank, or monetary authority is the entity responsible for the monetary policy of a country or of a group of member states....
 may choose to go into the open market and buy or sell government bonds, which is known as open market operations to increase reserves. Open market operations are when the central bank buys bonds from other bank
Bank

A bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. It is an institution for receiving, keeping, and lending money....
s in exchange for cheque
Cheque

A cheque or check is a negotiable instrument instructing a financial institution to pay a specific amount of a specific currency from a specified demand account held in the maker/depositor's name with that institution....
s. These local which allow them to take money from the central bank.






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In economics
Economics

File:Ballard Farmers' Market - vegetables.jpgEconomics is the Social sciences that studies the Production theory basics, Distribution , and Consumption of Good and Service ....
, the open market is the term used to refer to the environment in which bonds
Bond (finance)

In finance, a bond is a debt security , in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest and/or to repay the principal at a later date, termed Maturity ....
 are bought and sold.

To intervene in the "business cycle
Business cycle

The term business cycle or economic cycle refers to economy-wide fluctuations in production or economic activity over several months or years, around a long-term growth trend....
", a central bank
Central bank

A central bank, reserve bank, or monetary authority is the entity responsible for the monetary policy of a country or of a group of member states....
 may choose to go into the open market and buy or sell government bonds, which is known as open market operations to increase reserves. Open market operations are when the central bank buys bonds from other bank
Bank

A bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. It is an institution for receiving, keeping, and lending money....
s in exchange for cheque
Cheque

A cheque or check is a negotiable instrument instructing a financial institution to pay a specific amount of a specific currency from a specified demand account held in the maker/depositor's name with that institution....
s. These local which allow them to take money from the central bank. This action thus decreases any credit the local banks may owe to the central bank, and also increases their money supply
Money supply

In economics, money supply, or money stock, is the total amount of money available in an economy at a particular point in time. There are several ways to define "money", but standard measures usually include currency in circulation and demand deposits....
. This thus increases reserves.

See also

  • Free market
    Free market

    A free market is a market that is free of government intervention and regulation, besides the minimal function of maintaining the legal system and protecting property rights, and is also free of private force and fraud....
  • Money market
    Money market

    In finance, the money market is the global financial market for short-term borrowing and lending. It provides short-term market liquidity funding for the global financial system....
  • Open Market
    OpenMarket

    Open Market was an ecommerce startup company, founded in Cambridge, Massachusetts in early 1994. It went public in 1996 on the Nasdaq exchange under the symbol OMKT, as one of the first ecommerce IPOs....
     (an early ecommerce company)


fr:Open market