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JAMB Economics 1998 Question 31

Question 31

Financial Institutions

One of the techniques of monetary control used by the Central Bank of Nigeria is

  1. A.selective credit control
  2. B.budget deficit
  3. C.foreign exchange control
  4. D.monitoring the general price level.
Show the answer and explanation

Answer: A (selective credit control)

Explanation

Selective credit control, where the Central Bank tells banks which sectors to lend more or less to, is one of its tools for controlling money and credit.