passwella.
Menu

WAEC Economics 2004 Question 31

Question 31

Financial Institutions

Open Market Operation (OMO) means the

  1. A.provision of credit facilities by commercial banks
  2. B.provision of credit facilities by the mortgage banks
  3. C.buying and selling of government securities by the central bank
  4. D.procedure for the establishment of commercial banks
Show the answer and explanation

Answer: C (buying and selling of government securities by the central bank)

Explanation

OMO is the central bank buying or selling government securities to change the money supply.