Practicing Success
Buying of securities by Central Bank of a country is. |
Expansionary monetary policy Contractionary monetary policy Neutral monetary policy Anti-inflationary monetary policy |
Expansionary monetary policy |
The correct answer is Expansionary monetary policy. When a central bank buys securities, it is injecting money into the economy. This can lead to lower interest rates, which can stimulate economic growth. This type of monetary policy is known as expansionary monetary policy. |