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Commerce · Q594

Banking and Financial Institutions

Graduate and Post Graduate · Commerce · question 594

Q594

In order to control credit and investment, the Central Bank of a country should:

A.
sell securities in the open market and hike the Cash Reserve Ratio
Answer
B.
buy securities from the open market and lower the Cash Reserve Ratio
C.
buy securities from the open market and hike the Cash Reserve Ratio
D.
sell securities in the open market and lower the Cash Reserve Ratio

Answer: Option A

Solution

Answer: Option A
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