Buy and sell Central Bank open market bonds - Discuss the tool in detail?
Buy and sell Central Bank open market bondsDiscuss the tool in detail? north : Open Market Debt Bonds (Open Market) Operations: - The buying and selling of debt securities in the open market is another important tool of the central bank's numerical control system. Trading in the open market began with World War II. This tool has an immediate effect on the purchasing power of the economy. Therefore, this tool is widely used by the central bank. What are debt securities before looking at the way it reacts in the economy? It is worth watching. So the simplest definition of a debt bond is as follows. Debt bond: - "Debt bond is a written promise or agreement made by the government to a person or entity for a specific period of time, at a fixed interest rate." When the government needs money, such loans are issued and it is raised through sales through the central bank. The central bank, in line with its monetary policy objectives, controls the decline by buying and selling s...