Post Utme Covenant University 2025 Economics Question 1

Practice objective / multiple choice question 1 from the 2025 Post Utme Covenant University Economics examination.

Post Utme Covenant University 2025 Economics Objective / Multiple Choice
Question 1 POST_UTME_COVENANT_UNIVERSITY • 2025 • ECONOMICS • objective

The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to increase the money supply in the economy. What is the primary effect of OMO on the money supply?

Answer Options

A. Increase the reserve requirement of commercial banks
B. Sell government securities to commercial banks
Correct Answer C. Increase the money supply by injecting liquidity into the economy
D. Decrease the money supply by absorbing liquidity from the economy
Correct Answer
C
Correct Option:
Increase the money supply by injecting liquidity into the economy

About This Question

This is Post Utme Covenant University 2025 Economics Question 1. It is one of the objective questions from the 2025 Post Utme Covenant University Economics examination.

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