A central bank buys treasury securities at market rates in order to:

O A. decrease the amount of money banks hold in reserve.

B. increase the discount rate for private banks.

C. increase the money supply in the economy.

O D. decrease the unemployment rate by hiring workers.

Answer :

Answer:

C increase the money supply in the economy

Explanation:

apex

A central bank buys treasury securities at market rates in order to increase the money supply in the economy.

What is Treasury securities?

Nothing says "safety of principal" like Treasury securities when it comes to conservative investments.

These securities have served as a safe haven in the instability of the investment markets for decades, serving as the last line of defense against any potential loss of principle.

Thus, option C, increase the money supply in the economy is correct.

For more details about Treasury securities click here;

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