One of the techniques of monetary control used by the central bank of Nigeria is...
ECONOMICS
JAMB 2020
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
Correct Answer: C. foreign exchange control
Explanation
Foreign exchange control is the procedure by which a government intervenes in the foreign exchange market, banning or restricting sales and purchases of local currencies by non-residents as well as sales and purchases of foreign currencies by residents. This is one of the techniques used by the central bank for its monetary policies.
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