Open market operations occur when the central bank buys and sells ﬁnancial assets in return for money.

Name: Open market operations occur when the central bank buys and sells ﬁnancial assets in return for money.
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Question

Quizplus · Accepted Answer

This is the correct definition of open market operations. The central bank typically buys or sells government securities or other financial assets from banks or other financial institutions in order to influence the money supply and achieve its monetary policy goals.

Open Market Operations Occur When the Central Bank Buys and Sells