Open-market operations involve

Question

Quizplus · Accepted Answer

Open-market operations refer to the buying and selling of government bonds by central banks in the open market. When central banks purchase government bonds, they increase the money supply, and when they sell government bonds, they decrease the money supply. It is a tool that central banks use to control the money supply and implement monetary policy. The other options (A, C, and D) are related to other tools or organizations and are not directly related to open-market operations.

Open-Market Operations Involve