Which of the following is an example of expansionary monetary policy by the Central Bank...

Economics

JAMB 2023

Which of the following is an example of expansionary monetary policy by the Central Bank of Nigeria?

A. Lowering income taxes
B. Increasing the discount rate
C. Increasing the reserve ratio
D. Buying Treasury securities from commercial banks

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Correct Answer: Option D

Explanation

Expansionary monetary policy is used to increase the money supply in an economy. When the Central bank buys securities, it aims to expand the volume of money in circulation and where there is too much money in circulation, the CBN will sell securities.

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