Open market operations involve:

Question

Quizplus · Accepted Answer

Open market operations involve the buying and selling of government securities in the open market by the central bank in order to control the money supply and interest rates. Option A refers to the discount window, which is the lending facility provided by the central bank to commercial banks. Option B is incorrect because the central bank does not buy stocks in the stock market. Option D is unrelated to open market operations, and option E is a specific transaction that may occur but is not a regular part of open market operations.

Open Market Operations Involve