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JAMB Economics 1984 Question 32

Question 32

Financial Institutions

The Central Bank instrument of control does NOT include

  1. A.open market operations
  2. B.moral sanctions
  3. C.reserve requirements
  4. D.selective credit control
  5. E.printing bank-notes.
Show the answer and explanation

Answer: E (printing bank-notes.)

Explanation

Open market operations, moral suasion, reserve requirements and selective credit controls are the CBN's tools of monetary control; printing bank-notes is a function, not a control instrument.