Central Bank purchases Government securities  A. To increase credit  B. To control credit  C. To control inflation  D. To increase import

Question

Central Bank purchases Government securities  A. To increase credit  B. To control credit  C. To control inflation  D. To increase import
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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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