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What are open market operations What is their effect on availability of credit?


The impact of open market operations on credit availability is that the central bank sells government bonds and securities to commercial banks in order to adjust credit availability. Could you explain what is meant by open market? An open market is one where competition is unrestricted, with no barriers such as tariffs, taxes, licensing requirements, subsidies or unionization to hinder free market activity. What do bonds refer to? Bonds are issued by governments and businesses when they require funds. When you purchase a bond, you are essentially loaning the issuer money, and in exchange, they commit to repay you the full amount of the loan on a specific date and make periodic interest payments, generally twice a year. To learn more about subsidies, please visit: brainly.com/question/17136613 #SPJ4