Thanks to a touch upon the final put up , I discovered The Fed working paper explaining Fed’s thinking about in a single day reverse repurchases, Overnight RRP Operations as a Monetary Coverage Device: Some Design Considerations by Josh Frost, Lorie Logan, Antoine Martin, Patrick McCabe, Fabio Natalucci, and Julie Remache.
It is vital for the existence of developed cash market a steady availability of readily acceptable negotiable securities such a payments of exchange, treasury payments and so forth. in the market. There needs to be various sellers in the money market to transact in these securities. Availability of negotiable securities and the presence of sellers and brokers in large numbers to transact in these securities are wanted for the existence of a developed cash market. There’s absence of sufficient and proper credit score devices in addition to dealers to deal in these devices in an underdeveloped money market.
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