When the Reserve Bank Engages in Open Market Operations, It

question 86

Multiple Choice

When the Reserve Bank engages in open market operations, it is buying or selling

• A) securities newly issued by private companies.
• B) loans made to banks to meet the legal reserve requirement ratio.
• C) capital equipment.
• D) government securities.
• E) gold.

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Definitions:

Small Facility

Refers to a building or area that is smaller in size, used for a specific purpose, such as manufacturing or storage.

Operating Costs

Expenses related to the day-to-day functioning of a business, excluding costs associated with production or acquisition of goods.

Total Cost

The complete sum of all expenses incurred in producing, acquiring, or carrying out an activity or service, including direct, indirect, fixed, and variable costs.

Best Alternative

The most favorable option available to a decision-maker when multiple choices are present.