Open market operations refer to the buying and selling of ________ by the ________ to affect the level of liquidity in the economy.
A) government securities; Australian Treasury
B) government securities and private bonds; Reserve Bank of Australia
C) shares and private bonds; Australian Treasury
D) shares and government bonds; Reserve Bank of Australia

Question

Quizplus · Accepted Answer

Open market operations involve the buying and selling of government securities and private bonds by the Reserve Bank of Australia to influence the level of liquidity in the economy. The Australian Treasury does not directly participate in open market operations. Therefore, option B is the correct answer. Options A, C, and D are incorrect because they either include non-applicable securities or non-applicable institutions.

Open Market Operations Refer to the Buying and Selling of ________