'Open Market Operations' Refers to the Buying and Selling of ________

question 107

Multiple Choice

'Open market operations' refers to the buying and selling of ________ by the ________ to affect the level of liquidity in the economy.

• A)government securities; Australian Treasury
• B)government securities and private bonds; Reserve Bank of Australia
• C)shares and private bonds; Australian Treasury
• D)shares and government bonds; Reserve Bank of Australia

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Definitions:

Economic Profit

The difference between total revenue and the sum of explicit and implicit costs.

Marginal Revenue

Marginal Revenue is the additional income received from selling one more unit of a good or service.

Market Price

The present cost at which a service or asset is available for purchase or sale in a specific market.

Profit

The financial gain realized when the amount of revenue gained exceeds the expenses, costs, and taxes involved in sustaining the activity.