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JAMB Economics 1982 Question 25

Question 25

Financial Institutions

Monetary policy does NOT involve

  1. A.increasing the import duties
  2. B.buying or selling treasury bills by the Central Bank
  3. C.printing of more currency notes
  4. D.increasing or decreasing cash reserve ratio by the Central Bank
  5. E.raising the level of interest.
Show the answer and explanation

Answer: A (increasing the import duties)

Explanation

Import duties are a tax, so changing them is fiscal (or trade) policy; the other options change money supply or interest rates, which is monetary policy.