The central bank will typically withdraw liquidity

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Which of the following is correct? A. The central bank will typically withdraw liquidity when it desires a drop in interest rate. B. The central bank will typically add liquidity when it desires a rise in interest rate. C. The central banks purchases securities, mostly government bonds, to inject liquidity. D. The central banks purchases securities, mostly government bonds, to remove liquidity.

Reference no: EM131054585

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