Post Utme Lead City University 2025 Commerce Question 21

Practice objective / multiple choice question 21 from the 2025 Post Utme Lead City University Commerce examination.

Post Utme Lead City University 2025 Commerce Objective / Multiple Choice
Question 21 POST_UTME_LEAD_CITY_UNIVERSITY • 2025 • 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

Correct Answer A. The CBN buys government securities from commercial banks to increase the money supply.
B. The CBN sells government securities to commercial banks to reduce the money supply.
C. The CBN lends money to commercial banks to increase the money supply.
D. The CBN borrows money from commercial banks to reduce the money supply.
Correct Answer
A
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 2025 Commerce Question 21. It is one of the objective questions from the 2025 Post Utme Lead City University Commerce examination.

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