Post Utme Lead City University 2020 Commerce Question 26

Practice objective / multiple choice question 26 from the 2020 Post Utme Lead City University Commerce examination.

Post Utme Lead City University 2020 Commerce Objective / Multiple Choice
Question 26 POST_UTME_LEAD_CITY_UNIVERSITY • 2020 • COMMERCE • objective

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

Answer Options

A. The CBN sells government securities to commercial banks to reduce the money supply.
Correct Answer B. The CBN buys government securities from commercial banks to increase the money supply.
C. The CBN lends money to commercial banks to increase the money supply.
D. The CBN sells government securities to commercial banks to increase the money supply.
Correct Answer
B
Correct Option:
The CBN buys government securities from commercial banks to increase the money supply.

About This Question

This is Post Utme Lead City University 2020 Commerce Question 26. It is one of the objective questions from the 2020 Post Utme Lead City University Commerce examination.

View More Post Utme Lead City University 2020 Commerce Questions More Post Utme Lead City University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support