Which CBN tool directly influences the cost of borrowing?
ABVN
BMonetary Policy Rate (MPR)CORRECT
CBOFIA
DTIN
CIBNBanking Principles
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
MPR is CBN's benchmark policy rate. Raising MPR makes inter-bank borrowing costlier, which feeds through to lending rates.
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