Post Utme Joseph Ayo Babalola University 2018 Economics Question 11

Practice objective / multiple choice question 11 from the 2018 Post Utme Joseph Ayo Babalola University Economics examination.

Post Utme Joseph Ayo Babalola University 2018 Economics Objective / Multiple Choice

Question 11 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2018 • 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. If the CBN buys government securities from commercial banks, what is the effect on the money supply?

Answer Options

Correct Answer A. Increase in money supply

B. Decrease in money supply

C. No effect on money supply

D. Increase in interest rates

Correct Answer

Correct Option:

Increase in money supply

About This Question

This is Post Utme Joseph Ayo Babalola University 2018 Economics Question 11. It is one of the objective questions from the 2018 Post Utme Joseph Ayo Babalola University Economics examination.

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