Which of the following is used by the Central Bank of Nigeria to control inflation?

  • A Tariff on imports
  • B Tax rate
  • C Exchange rate
  • D Discount rate
jamb 2013economics

The correct answer is D. Discount rate

The Central Bank of Nigeria (CBN) primarily uses the discount rate to control inflation.

The discount rate is the interest rate at which the CBN lends to commercial banks.

By increasing the discount rate, the CBN makes it more expensive for commercial banks to borrow money, which can help reduce the money supply in the economy and control inflation.

Previous question Next question