In September 2012,the Argentinian central bank increased its benchmark interest rate via open market operations.The Argentinian central bank must have sold securities.

Question

Quizplus · Accepted Answer

When the central bank increases its benchmark interest rate via open market operations, it typically does so by selling securities to reduce the amount of money in circulation and increase the cost of borrowing. Therefore, in this case, the Argentinian central bank must have sold securities.

In September 2012,the Argentinian Central Bank Increased Its Benchmark Interest