JAMB Commerce 2007 Objective — Question 13

Question 13 of 50 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2007 Objective paper, with the correct answer and a full explanation.

The central bank controls the quantity of money in circulation through

A. decreasing the tax rate
B. issuing new currencies
C. open market operationsCorrect
D. increasing the tax rate

Explanation

Open Market Operations (OMO) - buying and selling government securities - is how the Central Bank controls money supply in the economy.

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