Monetary policy tool:

**The reasoning** Monetary policy refers to actions taken by a country's **Central Bank** (like the CBN in Nigeria) to control the money supply and interest rates in the economy. The key principle here is: *monetary policy = control of money and credit*. **Open market operations** is when the Central Bank buys or sells government securities (bonds, treasury bills) to banks. When CBN buys securities, it pumps money into banks → more lending → economy expands. When CBN sells securities, it pulls money out → less lending → economy cools down. This directly controls how much money flows in the economy. **Why the wrong options tempt you** - **Subsidies** and **Customs duty** are **fiscal policy** tools — government spending and taxation decisions (handled by Ministry of Finance, not Central Bank) - **Stamp** duties are also fiscal (tax collection) The trap: confusing monetary (Central Bank controlling money) with fiscal (Government controlling spending/taxes). They both affect the economy but use different tools. **Quick takeaway** If the Central Bank does it to control money supply, it's monetary policy; if the government does it through spending or taxes, it's fiscal policy.