Open-Market Operations Refers To

question 139

Multiple Choice

Open-market operations refers to:

• A)purchases of stocks in the Toronto Stock Exchange.
• B)the purchase or sale of government bonds by the Bank of Canada.
• C)central bank lending to chartered banks.
• D)the specifying of margin requirements on stock purchases.

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Definitions:

Dollar

A widely used unit of currency, notably in the United States, representing the medium of exchange within its economy.

Dollar Price

The cost of a good or service expressed in terms of the amount of U.S. dollars needed to purchase it.

Depreciates

The process by which an asset loses value over time, often due to wear and tear or passage of time.

Yen

The official currency of Japan, known in finance as an essential part of the foreign exchange market.