Regulation N

DEFINITION of 'Regulation N'

One of the regulations set forth by the Federal Reserve. Regulation N oversees financial transactions among Federal Reserve Banks, foreign entities, bankers and governments. It also makes the board of directors responsible for the advance approval of transactions or agreements between the Fed and foreign countries.

BREAKING DOWN 'Regulation N'

Regulation N may also give Federal Reserve member banks certain freedoms under the direction and supervision of the Federal Open Market Committee. This may include entering into negotiations or performing transactions in the open market. However, they are required to report to the Board of Governors concerning any dealings they have with foreign entities on a quarterly basis.

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