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WAEC Economics 2024 Question 39

Question 39

Financial Institutions

Money supply will increase when the Central Bank

  1. A.buys securities from the public.
  2. B.increases the reserve requirements.
  3. C.increases the bank rate.
  4. D.sells securities to the public.
Show the answer and explanation

Answer: A (buys securities from the public.)

Explanation

Paying for securities puts money into the economy.