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An open market operation is the purchase or sale of government securities, such as treasury bills and bonds in money market by the central bank.

An open market operation is the purchase or sale of government securities, such as treasury bills and bonds in money market by the central bank. Describe two (2) strengths of using open market operation over the other tools.

(5 marks)

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Question

An open market operation is the purchase or sale of government securities, such as treasury bills and bonds in money market by the central bank.

An open market operation is the purchase or sale of government securities, such as treasury bills and bonds in money market by the central bank. Describe two (2) strengths of using open market operation over the other tools. (5 marks)

Step by Step Solution

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Labor Economics

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An open market operation is the purchase or sale of government securities, such as treasury bills and bonds in money market by the central bank. Describe two (2) strengths of using open market operation over the other tools.

(5 marks)