By buying treasury bills, the Central Bank of Nigeria intends to
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Correct Answer: Option C
Explanation:
By buying treasury bills, the Central Bank of Nigeria intends to reduce the excess money in circulation in the economy. When the CBN issue treasury bills, they are inviting the public to invest in the debt security. This means, people will buy the security for a maturity period of 0-3 months.Â
By doing this, the available money held by househoulds is reduced. It is also used to control inflation.
By buying treasury bills, the Central Bank of Nigeria intends to reduce the excess money in circulation in the economy. When the CBN issue treasury bills, they are inviting the public to invest in the debt security. This means, people will buy the security for a maturity period of 0-3 months.Â
By doing this, the available money held by househoulds is reduced. It is also used to control inflation.