Question on: JAMB Economics - 2023

Buying Treasury securities from commercial banks is an example of expansionary monetary policy. When a central bank, like the Central Bank of Nigeria, buys Treasury securities, it injects money into the banking system. This increase in the money supply can lead to lower interest rates, increased lending, and stimulate economic activity. 

Lowering income taxes, increasing the discount rate, and increasing the reserve ratio are typically associated with contractionary monetary policies to reduce the money supply and cool down an overheated economy.