Which of These Open Market Operations in the European Central

question 24

Multiple Choice

Which of these open market operations in the European Central Bank is most central to overall monetary policy and carried out weekly?

• A)Longer-term refinancing
• B)Structural liquidity-reducing
• C)Main refinancing
• D)Structural liquidity-providing

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Definitions:

Discount Rate

The interest rate charged by central banks for loans to commercial banks or the rate used in discounted cash flow analysis to determine present value.

Issue Price

The price at which a new issue of securities (like stocks or bonds) is offered to the public by an issuer.

Decrease Rate

The rate at which a quantity is reduced over a specific period of time.

Weight Loss

The reduction of the total body mass, with an aim to improve fitness, health, and/or appearance.