Answer to Question #102952 in Macroeconomics for Michael

Question

An open-market policy by the South African Reserve Bank may involves.......

(A) selling of government stock to increase the liquidity deficit of the banks
(B) buying of government stock to increase the liquidity deficit of the banks
(C) selling of government stock to contribute to lower interest rates
(D) buying of government stock to contribute to lower interest rates

1. Only A and C are correct
2. Only A and D are correct
3. Only B and C are correct
4. Only B and D are correct

Answer 1

Only B and D are correct