JAMB Commerce 2021 Objective — Question 19

Question 19 of 40 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2021 Objective paper, with the correct answer and a full explanation.

19. Central banks buy at _____ a. Bank credit b. Bank rate c. Open market rate d. Cash reserve ratio

A. Bank credit
B. Bank rate
C. Open market rateCorrect
D. Cash reserve ratio

Explanation

The rate at which the Central Bank buys securities depends on the open market demand and supply forces, i.e. the open market rate.

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