Post Utme Rhema University 2019 Commerce Question 18

Practice objective / multiple choice question 18 from the 2019 Post Utme Rhema University Commerce examination.

Post Utme Rhema University 2019 Commerce Objective / Multiple Choice

Question 18 POST_UTME_RHEMA_UNIVERSITY • 2019 • COMMERCE • 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. What is the primary effect of OMO on the money supply?

Answer Options

A. Increase the reserve requirements of commercial banks

B. Sell government securities to commercial banks

Correct Answer C. Increase the money supply by injecting liquidity into the economy

D. Decrease the interest rate to stimulate borrowing

Correct Answer

Correct Option:

Increase the money supply by injecting liquidity into the economy

About This Question

This is Post Utme Rhema University 2019 Commerce Question 18. It is one of the objective questions from the 2019 Post Utme Rhema University Commerce examination.

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