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Money supply will increase when the Central Bank

Economics
WAEC 2024

Money supply will increase when the Central Bank

  • A. buys securities from the public.
  • B. increases the reserve requirements.
  • C. increases the bank rate.
  • D. sells securities to the public.
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Correct Answer: Option A
Explanation

A: When the central banks securities it pays people with each and that will result to increase in money supply in the economy. 

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