Which is considered the most effective tool by which the Central Bank of Nigeria can control the activities of commercial banks?
a
Open market operation
b
Reserve requirements
c
Bank rate
d
Directives
e
Special deposits
Explanation
Correct Option
bNo explanation available
Video Explanation
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Discussions (4)
Deepthinker581
4 years ago
A reserve requirement is a central bank regulation that sets the minimum amount that a commercial bank must hold in liquid assets.
buttersheetslap
1 year ago
the correct answer is special directives. Central bank 🏦 give direct message to commercial bank through special directives.
Dayox
1 month ago
open market operation is most effectiveand is the most suitable answer for the question as many other option are also ways that CBN control money supply
