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WAEC Commerce 2012 Question 18

Question 18

Banking

The Central Bank's monetary policy instrument by which it buys and sells Treasury bills is known as

  1. A.Open Market Operation.
  2. B.Bank rate.
  3. C.Cash reserve ratio.
  4. D.Special deposit.
Show the answer and explanation

Answer: A (Open Market Operation.)

Explanation

Buying and selling government securities in the open market is open market operation.