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Central banks sell treasury bills to the public to

Central banks sell treasury bills to the public to
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Increase cash in the banking system
  • B Raise revenue for commerical banks
  • C Raise revenue for private investors
  • D Reduce cash in circulation
Correct Answer: Option D
Explanation:
When the central bank sells treasury bills, buyers pay money to obtain the securities. This withdraws excess liquidity from the financial system and reduces the amount of money circulating in the economy, helping to control inflationary pressure.

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