NABTEB Commerce 2022 Objective — Question 26

Question 26 of 50 from the National Business and Technical Examinations Board (NABTEB) Commerce 2022 Objective paper, with the correct answer and a full explanation.

Central banks sell treasury bills to the public to

A. Increase cash in the banking system
B. Raise revenue for commercial banks
C. Raise revenue for private investors
D. Reduce cash in circulationCorrect

Explanation

When the central bank sells treasury bills, the public pays cash for them, reducing cash in circulation.

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