Economy, asked by AbhiramiGNath267, 9 months ago

Explain the role that the central bank plays in regulating the supply of money

Answers

Answered by HeAvEnPrlnCesS
2

Answer:

Central banks affect the quantity of money in circulation by buying or selling government securities through the process known as open market operations (OMO). When a central bank is looking to increase the quantity of money in circulation, it purchases government securities from commercial banks and institutions.

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