Question

____________ refers to the buying and selling of ______________ by the central bank from/ to the public and commercial banks.
(Fill up the blank with correct alternative)
i. Open market operations
ii. Shares
iii. Government securities
iv.Government bonds

[0.80 marks]

• A. i, and ii
• B. i and iii
• C. ii and iv
• D. iii and iv

Answer 1

The correct option is A i, and ii

Open market operations refers to the buying and selling of government securities by the central bank from/ to the public and commercial banks.