Open-market operations are purchases and sales of
A)government securities in the secondary market.
B)government securities in the primary market.
C)corporate bonds in the secondary market.
D)corporate bonds in the primary market.

Question

Quizplus · Accepted Answer

Open-market operations refer to the buying and selling of government securities in the secondary market by the central bank to regulate the money supply and interest rates. Therefore, option A is the correct answer. Options B, C, and D are incorrect because open-market operations are not conducted in the primary market or for corporate bonds.

Open-Market Operations Are Purchases and Sales of