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

The Central Bank purchases Government securities primarily for two reasons:

A. To increase credit: When the Central Bank purchases government securities, it essentially pumps money into the economy. This increases the amount of money that commercial banks have at their disposal to lend to businesses and individuals, thereby increasing credit.

B. To control inflation: By buying government securities, the Central Bank can effectively increase the money supply in the economy. If done in a controlled manner, this can help to keep inflation at a manageable level.

So, the correct answer would be both A and C. The Central Bank does not purchase government securities to increase imports (D), and while it can indirectly influence credit control (B), this is not the primary reason for purchasing these securities.