Macroeconomics

Open Market Operation

Definition

What is Open Market Operation?

A central-bank purchase or sale of securities to manage liquidity and interest rates.

Example in practice

The central bank sells bills to absorb excess banking-system liquidity.

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The total market value of final goods and services produced within a country during a period.

Gross domestic product adjusted for changes in prices.

Gross domestic product measured at current prices without adjusting for inflation.

A market environment in which investors favour higher-risk assets.

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