Accountancy, asked by Ari23, 1 year ago

Why the central bank is not useful for depositing money?

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Answered by twinkle1125

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When it needs to absorb money to reduce inflation, the central bank will sell government bonds on the open market, which increases the interest rate and discourages borrowing. ... Not all central banks, however, require commercial banks to deposit reserves.✔️✔️

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