JAMB Economics 2023 Objective — Question 13
Question 13 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2023 Objective paper, with the correct answer and a full explanation.
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Which of the following tools can the CBN use to reduce money supply?
- A. selling government securitiesCorrect
- B. buying government securities
- C. reducing reserve rate
- D. none of the above
Explanation
By selling government securities, the CBN withdraws cash from the economy, reducing money supply.
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