The open-market sale by the central bank

Name: The open-market sale by the central bank
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Open-market sales by the central bank involve the selling of government bonds, which decreases the reserves of banks, leading to a decrease in the monetary base. Therefore, option A is the best choice. Options B, C, and D are incorrect as they suggest an increase in the money supply, monetary base, and reserve-deposit ratio, respectively.

The Open-Market Sale by the Central Bank