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WAEC Economics 2026 Question 30

Question 30

Financial Institutions

The monetary measure that can cause an increase in the supply of money is

  1. A.reduction in tax on personal income
  2. B.sale of treasury bills by the Central Bank to commercial banks
  3. C.purchase of securities by the Central Bank from the open market
  4. D.increase in government expenditure
Show the answer and explanation

Answer: C (purchase of securities by the Central Bank from the open market)

Explanation

Buying securities pays money into the economy; tax and spending changes are fiscal, not monetary, measures.