When the Reserve Bank Engages in Open Market Operations to Buy

question 51

Multiple Choice

When the Reserve Bank engages in open market operations to buy securities

• A) the monetary base decreases by the amount of the open market purchase.
• B) the monetary base increases by more than the amount of the open market purchase.
• C) the monetary base increases by the amount of the open market purchase.
• D) the monetary base increases by less than the amount of the open market purchase.
• E) None of the above.

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