Post Utme Abu 2022 Commerce Question 26

Practice objective / multiple choice question 26 from the 2022 Post Utme Abu Commerce examination.

Post Utme Abu 2022 Commerce Objective / Multiple Choice

Question 26 POST_UTME_ABU • 2022 • COMMERCE • objective

The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to manage the money supply in the economy. Which of the following is a correct statement about OMO?

Correct Answer A. The CBN buys government securities from commercial banks to increase the money supply.

B. The CBN sells government securities to commercial banks to decrease the money supply.

C. The CBN lends money to commercial banks to increase the money supply.

D. The CBN borrows money from commercial banks to decrease the money supply.

Correct Answer

Correct Option:

The CBN buys government securities from commercial banks to increase the money supply.

This is Post Utme Abu 2022 Commerce Question 26. It is one of the objective questions from the 2022 Post Utme Abu Commerce examination.

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