Economics · Monetary Policy
When credit is to be expanded in the economy, what action does the central bank take?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Increases the cash reserve ratio
- 2Increases the bank rate
- 3Sells securities in the open market
- 4Buys securities in the open market✓
Correct answer
Buys securities in the open market
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