Question on: JAMB Economics - 2003
The monetary control instrument most effectively used by the Central Bank of Nigeria is the
A
open market operations
B
margin requirment
C
reserve ratio
D
discount rate
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Correct Option: A
The most effective monetary control instrument used by the Central Bank of Nigeria is open market operations. Open market operations involve the buying and selling of government securities in the open market to influence the money supply and interest rates. This is a flexible and frequently used tool.
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