Concept:Open market operations involve the central bank buying or selling government securities to regulate money supply and interest rates.
Explanation:Central banks do not directly trade shares, debentures, or equities in these operations.
They deal in financial instruments known as securities, especially government bonds and treasury bills.
When the central bank sells securities, it absorbs money from the banking system.
When it buys securities, it injects money into the banking system.
Thus, the item bought or sold is securities.
Answer:C. securities