Other central banks around the world may use different types of securities to buy or sell in conducting their open-market operations. Among the more common financial instruments traded by many central banks today are:
A) Bank deposits
B) Derivative securities
C) Central bank debt
D) All of the above
E) None of the above

Question

Quizplus · Accepted Answer

Central banks use a variety of financial instruments for open-market operations, including bank deposits, derivative securities, and their own debt. These tools are essential for implementing monetary policy, managing liquidity in the banking system, and influencing interest rates.

Other Central Banks Around the World May Use Different Types