Economics · Monetary Policy
Which one of the following is a classic example of open market operations practiced by a central bank?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Fixing the statutory liquidity ratio for scheduled banks
- 2Sale of foreign currency reserves to foreign exchange dealers
- 3Purchase and sale of government securities in the open market✓
- 4Sale of gold to commercial goldsmiths
Correct answer
Purchase and sale of government securities in the open market
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