Monetary policy and its instruments - Jamb Economics Past Questions and Answers

Question 6:

• JAMB 1994

Monetary policy aimed at reducing demand-pull inflation in the country maybe carried out through?

A. Increase in taxation of private companies, public corporations and private individuals
B. Increase in cash reserve ratio of commercial banks and the sale of government securities
C. Decrease in goverment expenditure on education
D. Direct price control in the market place

Question 7:

• JAMB 1998

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

A. Selective credit control
B. Budget deficit
C. Foreign exchange control
D. Monitoring the general price level

Question 8:

• JAMB 2003

The monetary control instrument most effectively used by the Central Bank of Nigeria is the

A. Open market operations
B. Margin requirment
C. Reserve ratio
D. Discount rate

Question 9:

• JAMB 2004

Which financial institution is charged with the formulation of monetary polices in Nigeria?

A. The Central Bank of Nigeria
B. The Nigeria Deposit Insurance Corporation
C. The Abuja Commodity Exchange
D. The Lagos Stock Exchange

Question 10:

• JAMB 2005

Above full employment level, an expansionary monetary policy will lead to a

A. Decrease in aggregate supply
B. Fall in the inflation rate
C. Rise in the inflation rate
D. Fall in aggregate demand