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The purpose for which the Central Bank sells securities is to

The purpose for which the Central Bank sells securities is to
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Reduce the interest rate
  • B Increase the interest rate
  • C Increase cash in the economy
  • D Reduce cash in the economy
Correct Answer: Option D
Explanation:
When the Central Bank sells securities, buyers pay money to the Central Bank, which reduces the amount of money circulating in the economy. This is used to control excess liquidity and reduce the supply of money in circulation.

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