Which type of open market operation is intended to change the level of reserves?
A) Defensive open market operations
B) Reserve requirements
C) Dynamic open market operations
D) Market equilibrium

Question

Quizplus · Accepted Answer

Dynamic open market operations are intended to change the level of reserves by buying or selling government securities in the open market. Defensive open market operations are intended to offset temporary fluctuations in reserves, and reserve requirements are a regulatory tool used to control the overall level of reserves. Market equilibrium is a term used to describe the balance between supply and demand in a market.

Which Type of Open Market Operation Is Intended to Change