An Instrument used by the central bank to fix commercial and merchant banks total credit...

ECONOMICSJAMB 2019

An Instrument used by the central bank to fix commercial and merchant banks total credit to domestic economy is________

  • A. monetary policy
  • B. fiscal policy
  • C. credit ceiling
  • D. open market operation

Correct Answer: C. credit ceiling

Explanation

Credit ceiling is one of the tools or instrument of monetary policy used by central bank to control credit in an economy.

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