Open Market Operation

(noun)

an activity by a central bank to buy or sell government bonds on the open market.

Related Terms

Examples of Open Market Operation in the following topics:

  • Open Market Operations

    • Open market operations (OMO) refer to a central bank's selling or buying of government bonds on the open market.
    • An open market operation (also known as OMO) is an activity by a central bank (in the U.S. it is the Fed) to buy or sell government bonds on the open market.
    • In practice, however, most assets cannot be traded readily enough to accommodate open market operations.
    • Treasury securities held in the Federal Reserve's open market account, December 31, 2004
    • Define the role and function of an open market operation (OMO)

  • Control of the Money Supply

    • These actions are known as open market operations and allow central banks to achieve a desired level of reserves.
    • The central bank retains tight control over its nation's money supply through the use of open market operations, the discount rate, and reserve requirements.
    • Open market operations, the most dominant instrument of monetary policy, are the behavior of a nation's central bank to trade or purchase government securities for cash in attempts to expand or contract the total money supply.
    • In recent years, some academic economists renowned for their work on the implications of rational expectations have argued that open market operations are irrelevant.
    • Summarize the argument against the role of open market operations in determining the nation's money supply

  • Designing the Operation

    • Operations management is a strategic function in organizations that adds value to customers and allows businesses to successfully produce goods and deliver services.
    • Operational decisions determine how well these goods and services meet the needs of the organization's target market, and consequently, whether the organization will be able to survive over the long-term .
    • Operations management and planning are common in industries such as the airlines, manufacturing companies, service provider organizations, the military, and government.
    • Operations management touches upon multiple areas of a business, from engineering and research & development, to human resources and accounting.
    • Operations management plays a key role in the success in airline companies.

  • Operations: the logistical rim on the wheel

    • Operations in a startup begin with the composition of a business plan.
    • Marketing Strategy explains what unique maneuvers your venture will under-take to accomplish the businesses goals.
    • Competitive Analysis documents who your main competitors are in the market place.
    • It is highly recommended that you post your new venture's Operations Gantt Chart on a wall in a visible location so that as many people as possible have access to this information.
    • Keep an open mind as you implement your operational plans for the startup.

  • New product: the tangible rim on the wheel

    • Developing a new product is an operational task that goes "above and beyond the call of duty" of utilizing the Operations Gantt chart described in the previous Operations section.
    • A new product bud is blooming: introducing the "New Venture Instructional Manual to Operational Excellence"
    • Brainstorm a list of the day-to-day steps that are taken to develop and market a new product.
    • Stay open and flexible to these new ideas.
    • Entrepreneurial Marketing; Real Stories and Survival Strategies by Molly Lavik and Bruce Buskirk, Module on Savvy Strategies for Marketing New Products, pages 188-190

  • Day-to-Day Needs

    • Operating cash flow refers to the daily cash inflows and outflows generated from business revenues earned, excluding certain costs.
    • Operating cash flow refers to the amount of cash a company generates from the revenues it brings in, excluding costs associated with long-term investment on capital items or investment in securities.
    • They are assets that are readily convertible into cash, such as money market holdings, short-term government bonds or Treasury bills, marketable securities, and commercial paper.

  • Trends in Franchises: International Adoptions

    • The concept of franchising enables organizations to expand their business through empowering locals in a given area to open a business location representing the parent company's brand, operational strategy, and products.
    • When considering the current trends in franchising from an international perspective, it's important to understand why organizations do this, why individuals are interested in opening a franchise, and why governments are open to allowing this approach.
    • For the franchisee, much of the initial business plan, sourcing, quality control, marketing, and other core functions are already prepared, tried, and tested.
    • As of 2010, opening a McDonald's franchise could cost anywhere from around $1 million to around $2 million (USD).

  • Operations Management

    • Operations management is the management of processes that transform inputs into goods and services that add value for the customer.
    • Operations management is the management of processes that transform inputs into goods and services that add value for the customer.
    • Operations is one of the three strategic functions of any organization.
    • The other two areas of strategic importance to the organization are marketing and finance.
    • Operations decisions include decisions that are strategic in nature, meaning that they have long-term consequences and often involve a great deal of expense and resource commitments.

  • Alternate Sources of Funds

    • Operating activities include the production, sales, and delivery of the company's product, as well as collecting payment from its customers.
    • Operating activities that generate cash flows are:
    • Sale of a non-current asset (assets, such as land, building, equipment, marketable securities, etc.)

  • Modern Trends in Marketing

    • Modern trends in marketing include relationship marketing, business or industrial marketing, and societal marketing.
    • Modern trends in marketing include relationship marketing, business or industrial marketing, and societal marketing .
    • With the growth of the Internet and mobile platforms, relationship marketing has continued to evolve as technology opens more collaborative and social communication channels.
    • Also known as industrial marketing, business marketing is at times called business-to-business marketing, or B2B marketing.
    • Modern trends in marketing include relationship marketing, industrial marketing, and societal marketing.