Open market Operation is ?
Correct answer: B. Buying and Selling govt. securities
- A. Buying and selling bills of exchange
- B. Buying and Selling govt. securities
- C. Buying and selling shares of companies
- D. Buying and selling foreign exchanges
Explanation
Open-market operations are the central bank's purchases and sales of government securities in the financial market. Buying securities injects money into the banking system, while selling them withdraws money.
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