Concept:Buying treasury bills by the Central Bank is an expansionary open market operation that pumps money into the economy.
Explanation:When the Central Bank buys treasury bills, it pays cash to banks or the public in exchange for the bills.
This transaction increases the reserves of commercial banks and boosts their ability to create credit.
As a result, the total money supply in the economy rises.
This action is the opposite of selling treasury bills, which withdraws money and reduces the money supply.
Therefore, the intention of buying treasury bills is to increase liquidity and stimulate economic activity.
Answer:A. increase money supply in the economy.