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Discussion

In order to control credit and investment, the Central Bank of a country should

  • A.Sell securities in the open market and hike the cash reserve ratio.
  • B.Buy securities in the open market and lower the cash reserve ratio.
  • C.Buy securities from the open market and hike the cash reserve ratio.
  • D.Sell securities in the open market and lower the cash reserve ratio.

Answer: A

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