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MGT411  GDB Idea guidline

In My opinion.

`19-1-2012

Open market operation is best to prevent inflation for long term  becuase it   indirectly control the total money supply , short term interest rate and supply of base money.In OMO   a central bank buys or sells government bonds on the Open Market.  The OMO  is  a means through which inflation can be controlled because when treasury bills are sold to commercial banks these banks can no longer give out loans to the public for the long period and therefore money is being reduced from circulation 

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