Explanation

(a)(i) Building society is a financial institution which specializes in the provision of long term mortgage loans for building purposes.
(ii) The central bank is defined as the asex bank established by an Act of Parliament and charged with management and control of the national  monetary affairs and the supervision and coordination of banking and financial activities of a country.

(b)(i) Open Market Operation (OMO): This is the sale and purchase of government securities like treasury bills to influence the supply of money. When there is excess liquidity in the economy, the central bank will sell her treasury bills and vice versa.
(ii) Liquidity ratio/cash ratio: banks are mandated by the law to keep a percentage of their total deposits in the form of liquid assets. This percentage can be increased if the central bank wants to reduce money supply and vice versa. 
(iii) Bank rate: This is the rate at which the central bank lends to commercial banks and also discount bills of exchange. To increase money supply the central bank will reduce the bank rate and vice versa.
(iv) Special deposit: the central bank can mandate banks to make special deposits with it so as to mop up excess liquidity when the need arises.
(v) Special directives: the central bank can order or instruct other banks to increase their lending to a particular sector so as to stimulate the sector for the overall growth of the economy.
(vi) Moral suasion: unlike other instruments, this is more of an appeal to other banks to restrict or expand their loans to a particular sector(s) of the economy.
(vii) Funding: this refers to the process where short-term debts of government are converted to long-term debts to reduce excess liquidity. 

• A number p is the algebraic sum of two terms, one of which varies directly as x and the other... Answer this

  2 Answers   ·   Mathematics   ·   3 years ago
• An alkanol containing 60% carbon by mass would have a molecules formula of (H=1.0, C=12.0, O=16.0)? Answer this

  1 Answers   ·   Chemistry   ·   1 hour ago
• What is the work of those who studied Social Science? Answer this

  1 Answers   ·   Social Science   ·   1 hour ago