When the Reserve Bank Buys Securities in Open Market Operations,it

question 12

Multiple Choice

When the Reserve bank buys securities in open market operations,it

• A)pays with newly created deposits.
• B)pays with new banks notes.
• C)pays for the securities with gold.
• D)pays with newly created bank reserves,which increases the monetary base.
• E)pays for the securities with an increase in the monetary quantity.

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Definitions:

Days' Sales

A financial ratio that indicates the average time in days that a company takes to sell its inventory, often referred to as days' sales in inventory or inventory turnover days.

Completed Products

Goods that have finished the manufacturing process and are ready to be sold to customers.

Goods Acquired

Refers to the products or commodities a company purchases to either resell or use in their production process.

Not Completely Finished

Pertains to products or goods that have commenced production but have not yet reached their final form or required specifications for sale or use.