Question

An instrument of credit control, the open market operation is mainly used to

• A. Raise the rates of interest at which the central bank lends
• B. Discourage businessmen from borrowing
• C. Raise resources for the government
• D. Influence the availability and cost of credit

Answer 1

The correct option is C

Raise resources for the government

Open market operations have mainly been used to raise resources for the government rather than to influence the availability and cost of credit.