How a countrys central banks open market operations involve
Problem
Explain why bond prices and the nominal rate of interest is inversely related. How does a country's central bank's 'Open Market Operations' involve the bond market? In addition, clearly explain the meaning of the term 'REPO RATE'.
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How does a country's central bank's Open Market Operations involve the bond market? In addition, clearly explain the meaning of the term REPO RATE.
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