PRC-3 · Chapter 19 · Question 14 of 17
In regulating the national money supply, the Central Bank engages in 'Open Market Operations'. This specific tool involves:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Buying and selling government bills, bonds, and securities in the economy
Explanation
Open Market Operations refer strictly to the central bank buying (to inject cash) or selling (to absorb cash) government securities in the open market.
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