Post Utme Redeemers University 2022 Commerce Question 31

Practice objective / multiple choice question 31 from the 2022 Post Utme Redeemers University Commerce examination.

Post Utme Redeemers University 2022 Commerce Objective / Multiple Choice
Question 31 POST_UTME_REDEEMERS_UNIVERSITY • 2022 • 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 OMO?

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 borrows money from commercial banks to reduce 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 Redeemers University 2022 Commerce Question 31. It is one of the objective questions from the 2022 Post Utme Redeemers University Commerce examination.

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