Economics · Monetary Policy
Arrange the following statements relating to open market operations in the correct sequence: (A) Thereby resulting in an increase in money supply (B) Central bank pays for it by giving a cheque (C) Central bank buys a government bond in the open market (D) This increases the total amount of reserves in the economy
- 1(C), (B), (D), (A)✓
- 2(D), (C), (B), (A)
- 3(B), (A), (C), (D)
- 4(A), (B), (C), (D)
Correct answer
(C), (B), (D), (A)
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