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If the Central Bank intends to increase the money supply through open market operations then…

If the Central Bank intends to increase the money supply through open market operations then it will
  • A.
    sell securities in the open market
  • B.
    buy securities in the open market
  • C.
    issues more currency note
  • D.
    withdraw money supply from the market
  • E.
    print more demand deposit
Correct Answer: Option B
Explanation