Question

Question 5 of 10

Which economic effect does a central bank hope to achieve by selling large

amounts of treasury securities?

A. It hopes to lower interest rates on banks and other private lenders.

OB. It hopes to reduce the amount of money available for lending,

C. It hopes to encourage businesses to hire more employees.

D. It hopes to encourage banks to increase their reserve rate.

SUBMIT

Answer 1

It hopes to reduce the amount of money available for lending.

Step-by-step explanation: