Central Bank purchases Government securities A. To increase credit B. To control credit C. To control inflation D. To increase import
Question
Solution 1
The Central Bank purchases Government securities primarily for two reasons:
A. To control credit: By buying government securities, the Central Bank injects money into the economy, increasing the amount of credit available. This is known as an expansionary monetary policy.
B. To control inflation: Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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