Which of the following is one of the responsibilities of the Central Bank of Nigeria?...
Which of the following is one of the responsibilities of the Central Bank of Nigeria?
- A) issuing new bond to finance public sector borrowing requirements
- B) auditing the various agencies and departments of government
- C) loaning money to other countries that transaction business with Nigeria
- D) assisting banks that are in financial position
Correct Answer: A) issuing new bond to finance public sector borrowing requirements
Explanation
The question is asking about the responsibilities of the Central Bank of Nigeria. The Central Bank of Nigeria is the apex financial institution in Nigeria and is responsible for managing the country's monetary policy. One of its main responsibilities is to issue new bonds to finance public sector borrowing requirements. This means that the Central Bank of Nigeria can issue government bonds to raise funds to finance the government's projects and activities.
Option B, auditing the various agencies and departments of government, is not one of the responsibilities of the Central Bank of Nigeria. Auditing is usually carried out by the Office of the Auditor-General of the Federation.
Option C, loaning money to other countries that transact business with Nigeria, is not one of the responsibilities of the Central Bank of Nigeria. This responsibility falls under the purview of the Ministry of Finance.
Option D, assisting banks that are in financial position, is not one of the primary responsibilities of the Central Bank of Nigeria. However, the Central Bank of Nigeria can provide financial assistance to struggling banks if it deems it necessary to stabilize the financial sector.
In summary, the correct option is option A, which states that one of the responsibilities of the Central Bank of Nigeria is to issue new bonds to finance public sector borrowing requirements.