coupon pass - Investment & Finance Definition
The purchase by the Federal Reserve (Fed) of Treasury notes or bonds from dealers. The term coupon refers to the coupons that are attached to the notes and bills. If the Fed purchases bills it is called a bill pass. The coupon pass and the bill pass are tools that the Fed can use to conduct open market operations and keep a stable supply of reserves in the monetary system.Webster's New World Finance and Investment Dictionary Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.