Post Utme Ui 2025 Commerce Question 21

Practice objective / multiple choice question 21 from the 2025 Post Utme Ui Commerce examination.

Post Utme Ui 2025 Commerce Objective / Multiple Choice
Question 21 POST_UTME_UI • 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 description of the OMO process?

Answer Options

Correct Answer A. The CBN sells government securities to commercial banks, which then use the funds to lend to the private sector.
B. The CBN buys government securities from commercial banks, which then use the funds to invest in the stock market.
C. The CBN lends money directly to the private sector, bypassing commercial banks.
D. The CBN sells foreign exchange to commercial banks, which then use the funds to import goods and services.
Correct Answer
A
Correct Option:
The CBN sells government securities to commercial banks, which then use the funds to lend to the private sector.

About This Question

This is Post Utme Ui 2025 Commerce Question 21. It is one of the objective questions from the 2025 Post Utme Ui Commerce examination.

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