Articles on: Investment Glossary

Matched Sale

Transactions in which the Federal Reserve sells a government security to a dealer or a foreign central bank and agrees to buy back the security on a specified date (usually within seven days) at the same price (the reverse of a repurchase agreement). Such transactions allow the Federal Reserve to temporarily absorb excess reserves from the banking system, limiting the ability of banks to make new loans and investments.

Updated on: 24/04/2023

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