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Trading of government securities

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The money related base is controlled during the lead of ?nancial approach by a money service or the national bank. These establishments change the money related base through open market activities: the trading of government securities. For instance, in the event that they purchase government bonds from business banks, they pay for them by adding new sums to the banks' save stores at the national bank, the last option being a part of the ?nancial base.

Reference no: EM133161268

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