Economics · Macroeconomics
Open Market Operations (OMO), carried out by a central bank, refer specifically to:
- 1The buying and selling of foreign exchange reserves in the international market
- 2The purchase and sale of government securities in the open market✓
- 3Varying the official bank rate at which it lends to commercial banks
- 4Altering the statutory Cash Reserve Ratio (CRR) for commercial banks
Correct answer
The purchase and sale of government securities in the open market
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