Solved

A Central Bank Can "Create" Money by

Question 6

Multiple Choice

A central bank can "create" money by


A) selling some of its foreign-currency reserves for domestic currency.
B) selling government Treasury bills to the commercial banks.
C) increasing the rate of inflation.
D) issuing its own Central Bank bonds.
E) purchasing government securities on the open market.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions