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27-05-2022
Business

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Explain how the open market works through the balance sheet of the central bank and related entities?

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Sweetxjerry Sweetxjerry

27-05-2022

Answer:

Open market operations (“OMOs”) are the central bank's primary tool of monetary policy. If the central bank wants interest rates to be lower, it buys bonds. Buying bonds injects money into the money market, increasing the money supply.

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