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The Central Bank Monetary policy instrument by which it buys and sells securities is ...

The Central Bank Monetary policy instrument by which it buys and sells securities is called
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Open market operation
  • B Bank credit
  • C Cash reserve ratio
  • D Bank rate
Correct Answer: Option A
Explanation:
Open market operations involve the central bank buying or selling government securities in the financial market. Selling securities can reduce the money supply, while buying securities can increase liquidity in the banking system.

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