Permanent open market operations of the Federal Reserve are executed by the Fede

Question

Permanent open market operations of the Federal Reserve are executed by the Federal Reserve Bank of New York.  What types of securities does the Federal Reserve buy or sell in permanent open market operations?

Corporate Debt

Mortgage Backed Securities, Debt issued by FNMA and FHLMC and Treasury Securities.

Treasury Securities, Mortgage-Backed Securities, Debt issued by FNMA and FHLMC, The S&P Corporate Debt

Debt issued by FNMA and FHLMC

Corporate Debt

Mortgage Backed Securities, Debt issued by FNMA and FHLMC and Treasury Securities.

Treasury Securities, Mortgage-Backed Securities, Debt issued by FNMA and FHLMC, The S&P Corporate Debt

Debt issued by FNMA and FHLMC

Explanation / Answer

Option - B

Mortgage Backed Securities, Debt issued by FNMA and FHLMC and Treasury Securities.

While MBS and Treasury securities comes under direct operations of Fed, Debt issue by FNMA and FHLMC are done through agency enterprises.

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