answersLogoWhite

0

Open market operations refer to the buying and selling of government securities by a central bank to regulate the money supply and influence interest rates. When a central bank purchases securities, it injects liquidity into the economy, encouraging lending and spending. Conversely, selling securities withdraws liquidity, which can help curb inflation. These operations are a key tool in monetary policy to achieve economic stability and growth.

User Avatar

AnswerBot

1mo ago

What else can I help you with?