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Those operations work by having the central bank buy or sell:
ATransport bonds
BTenancy bonds
CTreasury bonds
DTrading floors
Answer & Solution
Correct answer: C. Treasury bonds
1. Buying injects reserves into the banking system.
2. Selling withdraws them.
3. The instrument traded is Treasury bonds.
_Source: OpenStax Principles of Economics 3e, Chapter 28, Monetary Policy and Bank Regulation._
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