Post Utme Elizade University 2021 Commerce Question 6

Practice objective / multiple choice question 6 from the 2021 Post Utme Elizade University Commerce examination.

Post Utme Elizade University 2021 Commerce Objective / Multiple Choice
Question 6 POST_UTME_ELIZADE_UNIVERSITY • 2021 • COMMERCE • objective

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

Answer Options

A. OMO involves the sale of government securities to commercial banks.
Correct Answer B. OMO involves the purchase of government securities from commercial banks.
C. OMO involves the sale of government securities to the general public.
D. OMO involves the purchase of government securities from the general public.
Correct Answer
B
Correct Option:
OMO involves the purchase of government securities from commercial banks.

About This Question

This is Post Utme Elizade University 2021 Commerce Question 6. It is one of the objective questions from the 2021 Post Utme Elizade University Commerce examination.

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