Which of the following is true of open market operations? Select the correct answer below: Open market operations involves the buying and selling of stocks on the New York Stock Exchange Open market operations target the amount of currency in the market. Open market operations involve the purchase and sale of government securities. Open market operations is the process of changing the reserve ratio in the banking system.

The term "open market operation" simply has to do with monetary policy. Open market operation is usually considered as a tool in economics and It is a commonly used by central banks of countries or federal reserves.

The main thing that happens in open market operation is that Government securities are being bought and sold that is the purchase and sale of government securities. The selling and buying of government securities is to make sure that there is reduction in the way money is been supplied.

bratislava bratislava · Answer 2 · 2021-12-17T11:01:55+01:00

bratislava bratislava

17-12-2021

The OMO is an open market and refers to the cantle banks that buy and sell short-term treasures in a short-term open market.

They do this in order to influence the money supply.

Open market operations involve the purchase and sale of government securities.

Hence the option C is correct.

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