Open Market Operations occur when the South African Reserve Bank:OA.reduces spendingOB.buys and sells bonds and securitiesOC.increases taxationD.increases the exchange rate

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educes spending uys and sells bonds and securities ncreases taxation ncreases the exchange rate`

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Open Market Operations occur when the South African Reserve Bank:
OA.
reduces spending
OB.
buys and sells bonds and securities
OC.
increases taxation
D.
increases the exchange rate

Expert Solution

Step 1

Open market activities are the principle apparatus government to execute financial arrangement. They oversee South Africa's gold and foreign trade reserves. The SARB is liable for guaranteeing the wellbeing and adequacy of the public installment framework, which is the foundation of South Africa's advanced ﬁnancial framework.

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