What is the term For buying and selling of government securities to alter the money supply?

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2026-07-29 09:00

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The term for buying and selling government securities to alter the money supply is "open market operations." This monetary policy tool is used by central banks to influence liquidity and interest rates in the economy. By purchasing securities, a central bank injects money into the financial system, while selling them withdraws money, thereby affecting overall economic activity.

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