Open market operations involve:

A) opening the discount window.
B) buying stocks in the stock market.
C) buying and selling government securities in the open market.
D) opening new markets for commodities.
E) selling failed banks to other banks.

Open Market Operations

Actions by a central bank to buy or sell government securities in the open market to influence the money supply and interest rates, a key tool of monetary policy.

Government Securities

Financial instruments issued by the government to finance its expenditures, offering a return to investors.

Stock Market

A marketplace where shares of public companies are bought and sold.