Post Utme Bsu 2019 Economics Question 10

Practice objective / multiple choice question 10 from the 2019 Post Utme Bsu Economics examination.

Post Utme Bsu 2019 Economics Objective / Multiple Choice
Question 10 POST_UTME_BSU • 2019 • ECONOMICS • objective

A country's balance of payments deficit is ₦5,000,000,000. The central bank can use monetary policy to reduce the deficit. Explain how the central bank can use open market operations to reduce the deficit.

Answer Options

Correct Answer A. Sell government securities to reduce the money supply
B. Buy government securities to increase the money supply
C. Increase interest rates to reduce consumption and imports
D. Decrease interest rates to increase consumption and imports
Correct Answer
A
Correct Option:
Sell government securities to reduce the money supply

About This Question

This is Post Utme Bsu 2019 Economics Question 10. It is one of the objective questions from the 2019 Post Utme Bsu Economics examination.

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