Open market operations are when the Reserve Bank buys or sells
A)gold.
B)corporate securities from the government.
C)government securities from the government.
D)corporate securities from banks or some other business.
E)government securities from banks or some other business.

Question

Quizplus · Accepted Answer

Open market operations refer to buying or selling government securities, typically from banks or other financial institutions. This is done in order to influence the supply of money in the economy and its interest rates. Therefore, the correct choice is E, which states that the Reserve Bank buys or sells government securities from banks or some other business.

Open Market Operations Are When the Reserve Bank Buys or Sells