WAEC Commerce 2017 Objective — Question 26

Question 26 of 50 from the West African Examinations Council (WAEC) Commerce 2017 Objective paper, with the correct answer and a full explanation.

26. The Central Bank carries out its monetary policy through

A. A. discounting bills
B. B. credit ceiling
C. C. replacement of worn-out notes
D. D. bank ratesCorrect

Explanation

The CBN can dictate the rate at which banks gives out loan to regulating the amount the bank can give out. The higher the bank rate, the lesser the ability of the bank to create credit.

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