What Are Open Market Operations (OMO)?

Open market operations (OMO) refer to the buying and selling of government securities in the open market by the Federal Reserve. The Federal Reserve uses OMOs to influence the supply of reserve balances in the banking system and thereby affect the federal funds rate and other short-term interest rates. OMOs are conducted by the Federal … Read more

Card Reader Definition.

A card reader is a device that is used to read the information on a credit or debit card. This information includes the cardholder’s name, account number, and expiration date. The card reader can be either a physical device that is attached to the credit card terminal, or it can be a software program that … Read more

Effective Annual Interest Rate.

The effective annual interest rate is the actual rate of interest paid on a loan or earned on an investment over a one-year period. This rate takes into account the effects of compounding and can be used to compare different investments. The effective annual interest rate is also known as the effective rate or the … Read more