Which of the following statements is true about Open Market Operations?

CA Foundation · Business Economics · MTP · September 2025
Which of the following statements is true about Open Market Operations?
(A) A. Central Bank controls the flow of credit through the sale and purchase of securities in open market
(B) B. It increases money supply with commercial banks and public
(C) C. It will expand credit in the economy
(D) D. All of the above

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. All of the above

Topics: Money Market

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