Multiple choice general knowledge

‘Open Market Operation ‘ is a part of

  1. Income Policy

  2. Fiscal Policy

  3. Credit Policy

  4. Labour Policy
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Open Market Operations refer to the buying and selling of government securities by the central bank to control the money supply, which is a core instrument of monetary or credit policy. Fiscal policy deals with government taxation and spending instead. Thus, credit policy is the correct category for managing money supply.

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