Commerce WAEC

The central bank carries out its monetary policy through?

A. discounting bills
B. credit ceiling
C. replacement of worn-out notes
D. bank rates

Correct Answer: Option D

D. bank rates

Explanation

Bank rate, also referred to as the discount rate is the rate of interest which a central bank charges on its loans and advances to a commercial bank. the central bank can either increase or decrease bank rates to regulate the flow of money in the economy

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