WAEC Commerce 2012 Objective — Question 18
Question 18 of 50 from the West African Examinations Council (WAEC) Commerce 2012 Objective paper, with the correct answer and a full explanation.
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The central Bank's monetary policy instrument by which it buys and sells Treasury bills is known as
- A. open market operationCorrect
- B. Bank rate
- C. Cash reserve ratio
- D. special deposit
Explanation
Open market operation is the arrangement used by CBN to buy and sell securities in order to regulate the monetary flow of the economy.
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