Answered

Welcome to Westonci.ca, the Q&A platform where your questions are met with detailed answers from experienced experts. Discover a wealth of knowledge from professionals across various disciplines on our user-friendly Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

The purchase of securities from the public increase the ______ ability of the commercial banking system.

Sagot :

ayokenny2001

The purchase of securities from the public increase the lending ability of the commercial banking system.

When the central bank purchases securities from the public through the use of monetary policy such as treasury bills, it increases the reserves of commercial banks thereby increasing their lending capacity.

Federal government uses this type of monetary policy to regulate the supply of money in an economy.

Thus, there would be an increase in the lending ability of commercial banking system when there are purchases of securities from the public.

Read more at: https:https://brainly.com/question/1558238

We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.