Multiple choice

Open market operations perform

  1. direct sales of securities

  2. indirect sales of securities

  3. purchase and sales of bills

  4. all of these

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Open market operations involve central bank purchases and sales of government securities and bills in the open market. This is the primary tool for implementing monetary policy and controlling money supply. The options A, B, and C are all specific aspects that fall under open market operations.