Giving reasons, state whether the statements are true or false:Purchase of government securities by the central bank in the open market is an appropriate policy to check depression in the economy.

Giving reasons, state whether the statements are true or false:Purchas

1.	Giving reasons, state whether the statements are true or false:Purchase of government securities by the central bank in the open market is an appropriate policy to check depression in the economy.
Answer» True. To check depression the central bank should purchase government securities from the open market, so as to increase the availability of credit in the economy.

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Giving reasons, state whether the statements are true or false:Purchase of government securities by the central bank in the open market is an appropriate policy to check depression in the economy.

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