WAEC Economics 2021 Objective — Question 34
Question 34 of 50 from the West African Examinations Council (WAEC) Economics 2021 Objective paper, with the correct answer and a full explanation.
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34. Government can curb inflation by
- A. encouraging banks to lend for any purpose.
- B. increasing her own expenditure.
- C. buying treasury bills in the open market.
- D. selling securities in the open market.Correct
Explanation
Selling securities in the open market withdraws cash from circulation, reducing the money supply and purchasing power, which helps curb inflation.
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