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WAEC Economics 2012 Question 41

Question 41

Financial Institutions

In open market operations, what the Central Bank sells or buys are

  1. A.shares.
  2. B.debentures.
  3. C.securities.
  4. D.equities.
Show the answer and explanation

Answer: C (securities.)

Explanation

The central bank buys and sells government securities to change banks' cash and credit.