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The central bank can increase liquidity in the banking system, by:

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The central bank can increase liquidity in the banking system, by:

A.

selling government bonds and lowering interest rates

B.

selling government bonds and raising interest rates

C.

buying government bonds and raising interest rates

D.

buying government bonds and lowering interest rates

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  • Product: BA1
  • Update on: Jul 28, 2025
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TESTED 06 Aug 2025