Write the meaning of Open market operations?

1.	Write the meaning of Open market operations?
Answer» 1. In narrow sense, the Central Bank starts the purchase and sale of Government securities in the money market. 2. In Broad Sense, the Central Bank purchases and sells not only Government securities but also other proper eligible securities like bills and securities of private concerns. 3. When the banks and the private individuals purchase these securities they have to make payments for these securities to the Central Bank.

Answer»

1. In narrow sense, the Central Bank starts the purchase and sale of Government securities in the money market.

2. In Broad Sense, the Central Bank purchases and sells not only Government securities but also other proper eligible securities like bills and securities of private concerns.

3. When the banks and the private individuals purchase these securities they have to make payments for these securities to the Central Bank.

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Write the meaning of Open market operations?

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