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Which of the following is used by the Central Bank to control the rate of...

Economics
JAMB 1986

Which of the following is used by the Central Bank to control the rate of interest?

  • A. Bill of Exchange
  • B. Banker's order
  • C. Fixed deposit account
  • D. Open market operation
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Correct Answer: Option D
Explanation

Open market operation​​​​​​: Open market operations involve the buying and selling of government securities to influence the money supply and interest rates in the economy.

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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts