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 In which ways may the Central Bank use to reduce the amount of money in circulation?

Tools of monetary control 

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Ways Central Bank may use to reduce the amount of money in circulation include;

  • Increase in the bank rate
  • Buying of government securities in the open market
  • Increase cash or liquidity ratio
  • Increase in compulsory deposit requirement
  • Selective credit control
  • Reduce margin requirement
  • Request commercial banks to control credit
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