WAEC Commerce 2021 Objective — Question 29
Question 29 of 50 from the West African Examinations Council (WAEC) Commerce 2021 Objective paper, with the correct answer and a full explanation.
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The purpose for which the Central Bank sells securities is to
- A. reduce the interest rate
- B. reduce cash in the economyCorrect
- C. increase cash in the economy
- D. increase the interest rate
Explanation
When the Central Bank sells securities, it receives cash from the public, thereby reducing cash in circulation.
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