25.Central Bank sells Government securities  A. To Decrease credit  B. To control inflation  C. To control credit  D. To boost economy

The Central Bank sells Government securities for several reasons:

A. To Decrease credit: When the Central Bank sells government securities, it is essentially taking money out of the financial system. This reduces the amount of money available for banks to lend, which can decrease credit.

B. To control inflation: By selling government securities, the Central Bank can reduce the amount of money in circulation. This can help to control inflation by reducing the amount of money chasing the same amount of goods and services.

C. To control credit: Similar to decreasing credit, the Central Bank can sell government securities to control the amount of credit in the economy. By reducing the amount of money available for banks to lend, it can help to prevent the economy from overheating.

D. To boost economy: This might seem counterintuitive, but by selling government securities, the Central Bank can actually help to boost the economy. This is because the money received from the sale of these securities can be used to fund government spending, which can stimulate economic activity. However, this is more of a secondary effect and not the primary reason for selling government securities.