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- Subject
- Basic of Economicseconomics-mcqs › basic-of-economics
- Published
- 26 May 2019
- Last updated
- 28 May 2026
What does an Open Market Operation involve?
Multiple choice question for Basic of Economics. Select an option, then review the explanation below.
Explanation
Open Market Operations refer to the central bank's activity of buying and selling government securities to regulate the money supply. It does not involve trading bills of exchange, corporate stocks, or foreign currencies.
More Basic of Economics MCQs
Practice related questions from the same subject.
- 1.Which of the following best describes deflation?
- 2.Under what condition can two nations benefit from engaging in international trade?
- 3.Which of the following represents a legitimate form of currency?
- 4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
- 5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?