Post Utme Lead City University 2017 Commerce Question 11

Practice objective / multiple choice question 11 from the 2017 Post Utme Lead City University Commerce examination.

Post Utme Lead City University 2017 Commerce Objective / Multiple Choice
Question 11 POST_UTME_LEAD_CITY_UNIVERSITY • 2017 • COMMERCE • objective

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

Answer Options

A. OMO increases the money supply in the economy
Correct Answer B. OMO decreases the money supply in the economy
C. OMO has no effect on the money supply in the economy
D. OMO increases the money supply in the economy, but only in the short run
Correct Answer
B
Correct Option:
OMO decreases the money supply in the economy

About This Question

This is Post Utme Lead City University 2017 Commerce Question 11. It is one of the objective questions from the 2017 Post Utme Lead City University Commerce examination.

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