Detailed explanation and options for the selected question.
What is “open market operations” (OMO)?
A.
Buying and selling of foreign currency
B.
Buying and selling of government securities by the central bank
C.
Imposing import duties on foreign goods
D.
Regulating the interest rates for loans
Explanation:
OMO refers to the buying and selling of government securities by the central bank to control liquidity. It is not related to foreign currency or import duties.