USER'S INSTRUCTIONS: The project work you are about to view is on "effect of open market operation as tools of monetary policy of the central bank of nigeria in controlling the economy". Please, sit back and study the below research material carefully. This project topic "effect of open market operation as tools of monetary policy of the central bank of nigeria in controlling the economy" have complete 5(five) Chapters. The complete Project Material/writeup include: Abstract + Introduction + etc + Literature Review + methodology + etc + Conclusion + Recommendation + References/Bibliography.Our aim of providing this "effect of open market operation as tools of monetary policy of the central bank of nigeria in controlling the economy" project research material is to reduce the stress of moving from one school library to another all in the name of searching for "effect of open market operation as tools of monetary policy of the central bank of nigeria in controlling the economy" research materials. We are not encouraging any form of plagiarism. This service is legal because, all institutions permit their students to read previous projects, books, articles or papers while developing their own works.

---

TITLE PAGE

EFFECT OF OPEN MARKET OPERATION AS TOOLS OF MONETARY POLICY OF THE CENTRAL BANK OF NIGERIA IN CONTROLLING THE ECONOMY

BY

---
EE/H2013/01430
DEPARTMENT OF ----
SCHOOL OF ---
INSTITUTE OF ---

DECEMBER,2018

---

APPROVAL PAGE

This is to certify that the research work, "effect of open market operation as tools of monetary policy of the central bank of nigeria in controlling the economy" by ---, Reg. No. EE/H2007/01430 submitted in partial fulfillment of the requirement award of a Higher National Diploma on --- has been approved.

By
---                                                     . ---
Supervisor                                                  Head of Department.
Signature……………….                           Signature……………….        

……………………………….
---
External Invigilator

---

DEDICATION
This project is dedicated to Almighty God for his protection, kindness, strength over my life throughout the period and also to my --- for his financial support and moral care towards me.Also to my mentor --- for her academic advice she often gives to me. May Almighty God shield them from the peril of this world and bless their entire endeavour Amen.

---

ACKNOWLEDGEMENT

The successful completion of this project work could not have been a reality without the encouragement of my --- and other people. My immensely appreciation goes to my humble and able supervisor mr. --- for his kindness in supervising this project.
My warmest gratitude goes to my parents for their moral, spiritual and financial support throughout my study in this institution.
My appreciation goes to some of my lecturers among whom are Mr. ---, and Dr. ---. I also recognize the support of some of the staff of --- among whom are: The General Manager, Deputy General manager, the internal Auditor Mr. --- and the ---. Finally, my appreciation goes to my elder sister ---, my lovely friends mercy ---, ---, --- and many others who were quite helpful.

---

PROJECT DESCRIPTION: This work "effect of open market operation as tools of monetary policy of the central bank of nigeria in controlling the economy" research material is a complete and well researched project material strictly for academic purposes, which has been approved by different Lecturers from different higher institutions. We made Preliminary pages, Abstract and Chapter one of "effect of open market operation as tools of monetary policy of the central bank of nigeria in controlling the economy" visible for everyone, then the complete material on "effect of open market operation as tools of monetary policy of the central bank of nigeria in controlling the economy" is to be ordered for. Happy viewing!!!

---

Over the years, the objectives of monetary policy have remained the attainment of internal and external balance of payments. However, emphasis on techniques/instruments to achieve those objectives have changed over the years. There have been two major phases in the pursuit of monetary policy, namely, before and after 1986. The first phase placed emphasis on direct monetary controls, while the second relies on market mechanisms. Monetary policy in 2018 continued to be shaped by developments in the global and domestic economic and financial environment. At the global level, the key influences were: increased monetary policy divergence among the advanced economies; continued uncertainties surrounding the BREXIT negotiations and sustained monetary policy normalization in the US as the Fed hiked its interest rate and gave forward guidance of more, with implications for capital reversals from the emerging markets and developing economies. Others included the U.S withdrawal from the Iranian nuclear deal, the emerging trade tensions between the US and other major world economies as well as pockets of geopolitical tensions. These, notwithstanding, the global economy continued on the path of recovery, stemming from the strengthening of domestic investment demand and relatively easier financing conditions in the advanced economies, as well as the sustained recovery in oil and other commodity prices, amid limited spillovers of trade tensions to market sentiments. The main aim of this work is to identify the source of monetary policy and its impact on Nigeria financial institution

 

TABLE OF CONTENTS
TITLE PAGE                                                              I
CERTIFICATION                                                        II
DEDICATION                                                             III
ACKNOWLEDGEMENT                                               IV
TABLE OF CONTENTS                                               V
CHAPTER ONE

1. INTRODUCTION
2. STATEMENT OF THE PROBLEM
3. RESEACH QUESTION
4. OBJECTIVES OF THE STUDY
5. RESEARCH HYPOTHESIS
6. SIGNIFICANT OF THE STUDY
7. SCOPE AND LIMITATION OF THE STUDY
8. DEFINITION OF TERMS
9. PLAN AND ORGANIZATION OF THE STUDY                                

CHAPTER TWO

1. LITERATURE REVIEW
2. HISTORICAL BACKGROUND OF CBN
3. INSTRUMENT USED IN MONETARY POLICY
4. MONEY SUPPLY AND DETERMINANT
5. BANKING CREDIT SYSTEM TO THE ECONOMY
6. BANKING CREDIT SYSTEM TO THE PRIVATE SECTOR
7. OPEN MARKET OPERATION

CHAPTER THREE

1. RESEARCH METHODOLOGY
2. SOURCES OF DATA
3. METHOD OF DATA COLLECTION
4. ANALYSIS OF DATA COLLECTION
5. POPULATION OF THE STUDY
6. LIMITATION OF THE METHODOLOGY                                   

CHAPTER FOUR

1. DATA PRESENTATION, ANALYSIS, AND INTERPRETATION OF RESULT
2. DATA PRESENTATION
3. DATA ANALYSIS

CHAPTER FIVE

1. SUMMARY
2. CONCLUSION
3. RECOMMENDATION

REFERENCES                                                                                      

CHAPTER ONE
1.1   INTRODUCTION
In the past year, the Nigeria economy has witness serious micro economy problem, characterized by show in the economic activities, how capacity utilization growing unemployment level debt burden, accelerated inflation intensify exchange rate separation as well as higher perfect receiving of interest rate persistently high and government deficit financing has been identified as the major factors in the observed micro economy problems.
When we talk of micro economy policies, this deals with monetary and physical policies, but this concerned mainly on monetary policies.
Therefore, monetary policies comprises of those policies desired to influence the behaviors of micro economy preferably the basic aim of the monetary policy are not the monetary aggregate themselves, but the aggregate in the real sector of the economy such as level of output, stabilization and the economy development.
The policies are designed in an items to charge the trend of some monetary variable in particular direction so as to infuse the desire behavioral change in the monetary policies the bank role is to conduct appropriate monetary policies that is consistence with the main economy objective of achieving real growth in gross domestic product, low inflation rate and satiable balance of payment position. This irrespective of whether the direct or indirect approach is put in place to control money and crudity.
In this regard, the CBN clatter the amount of monetary supply that is consistent with the country micro economy objective and manipulated the monetary instrument at his disposal in order to achieve the state objectives.
Monetary policy is use to influence the macroeconomic objective because there is believe that this occur in relationship between the trace variable at the monetary variables.
From the above explanation monetary policy could therefore be define as a delicate action taken by monetary authorities to change the domestic stock of money supply while fiscal policy variable teaming constant.
Monetary policy influences the level of aggregate income and spending in the economy by influence money supply and the cost of borrowing money from the bank. It could also be defined as a policy employing the central bank. It could also be defined as an instrument for achieving the objective of a general economic policy or as a tool use by the monetary authority in other to achieve state economic objectives.

1.2   STATEMENT OF THE PROBLEM
Despite the impact which monetary policy has played in the Nigeria financial institution, a lot of problems still control the monetary policy and their client and this study therefore carried out to investigate such problem like:

1. Expansion of more commercial bank and liquidation of most financial institution in Nigeria.
2. Monetary supply is not controlled in line with the demand in the real sector which heads to a situation of disequilibrium.
3. This is adverse effect on recent banking regulation of the liquidity and profitability objective of banking too low of money supply which leads to hinder of investment.
4. There is a large non-monetized sector which hinders the success of monetary policy in such countries – people mostly live in rural areas where barter is practiced.
5. Monetary policy is also not successful in such countries because bank money comprises a small proportion of the total money supply in the country.

1.3   RESEACH QUESTION

1. Does your bank grants loan and advances to their customers?
2. What is the type of loan given out mostly?
3. Who is responsible for giving out of loan?
4. Do you think that granting of loan and advances to customers have any positive effect on the economy?
5. Do you think increasing the rate of granting credit facilities help in improving the economy?
6. Does your bank have credit control and management?
7. How efficient is the credit management and control department?

1.4 OBJECTIVES OF THE STUDY
The main objective of the study is to identify the source of monetary policy and its impact on Nigeria financial institution.

1. To ensure domestic price stability
2. To avoid unnecessary fluctuation in income and employment.
3. To stimulate economy growth by avoiding miss-allocation of resources 
4. To maintain healthy balance of payment equilibrium.
5. To maintain full employment
6. To create a broad and continues for government securities
7. To provide a credit at differential interest to economically weaker section of the community.
8. To help in the establishment and development of tern financing institution

1.5   RESEARCH HYPOTHESIS
It is hypothesis that the monetary policy ia a policy document designed to reputation and control the volume cost available and directions of money and credit in economic policy objectives the following hypothesis will be used.

1. Ho: open market operation has no effect on monetary policy of CBN
2. Hi: open market operation has effect on monetary policy of CBN

 1.6  SIGNIFICANT OF THE STUDY
Presently, the business environment economy as well as banking industry as experience massive benefits from the introduction of monetary policy at an appropriate level to ensure sustainable economy growth and maintain internal and external stability.
The following people will be benefited from the significant of monetary policy in an economy.

TO THE GOVERNMENT: it enables government to control monetary supply because it rate of growth has an effect on inflation.

1. It helps government for dictating course of economy.
2. It’s an action which aimed at achieving  a certain set of economy objective also an attempt to control money

TO THE PUBLIC: it brings sustainable economy growth and maintains both internal and external stability growth.

1. It gives aggregate supply of money in calculation and census interest rate.
2. Discouragement inflation with an increase in the along the bank policy guide line.
3. It control the supply of money in circulation whereby too much money used to purchase few goods

TO THE INVESTORS: it an encouragement to the investors as the supply of money is been control core with increase in the volume of purchasing power.

1.7   SCOPE AND LIMITATION OF THE STUDY
This study has chosen central bank of Nigeria being the case study to critically examine the effect of open market operation as tools of monetary policy of the central bank of Nigeria in controlling the economy. However, the research work has been constrained to the below statements:

1. Time Constraint: the time has not always been a friends this is due to the part that time available is too short to combine this project work with my other academic programmers.
2. Financial constraint: there has been weak financial capability faced by the research this problem of getting fraud in order to finance this project will affect this project.
3. Lack of adequate material: in the course of the study, the materials are not detailed enough and not satisfactory to meet with the policy of good lending.

1.8   DEFINITION OF TERMS
Financial Institution can be defined as a cooperate financial bodies that provide financial assistant to all private and public sector for development and capitalization of the business also to embark on long term capital project.
Monetary policy is a policy document designed to reputation and controls the volume cost available and directors of money and credit in economics policy objectives.
Monetary policy refers to the combination of measures designed to regulate the values, supply and cost of money in an economy.
Central bank of Nigeria (CBN) may be defined as the only financial institution established and charged with the day to day management and control of national monetary affairs, the supervision and coordination of banking and financial activities of the country.
Central banking refers to the role of central monetary authority or an apex financial institution with one entire financial structure in promoting monetary stability and financial system through the use of monetary instrument

QUANTITATIVE: this is the direct control which comprises of open market operation, reserve requirement and bank rate. These are meant to regulate the level of credit.

QUALITATIVE: this is the indirect control which includes selective credit control and moral suasion. These also aimed at controlling specific types of credit and interest rate.

OPEN MARKET OPEN: open market operation means the purchase or sale government securities. It buys government securities in markets in order to increase the money supply on the other hand when it sells government securities to mop up excess liquidity in the banking system.

RESERVE REQUIREMENT: In Nigeria all banks are required to maintain two major reserve ratios, a cash and liquid assets reserves otherwise known as liquidity ratio.

SELECTIVE CREDIT CONTROL: the central bank of Nigeria instruct banks on a sectored allocation of credit and ….. Ability and bank are expected to comply.

BANK RATE: Bank rate is the rate of interest charged by the control bank for discounting bill. It is a penal rate in the sense that it is always above the rate at which the bills are discounted.

MORAL SUASION: Refer to a whole series of action that the Central Bank may take to influence the lending practitioners of commercial bank and sometimes other lenders.

INTEREST RATE: This is the rate which bank charge on loan or advance given to the customers, it determine by the bank rate.

1.9   ORGANIZATION OF THE STUDY
This research work of this study will be divided into five chapters.
Chapter one, includes introd1uction, aim and objection, significant of the important, statement of the problem, scope and limitation, definition of term and finally plan of the study.
Chapter two is based on avoidance of literature relating to the topic question (monetary policy and its impact of Nigeria Financial Institution).
Chapter three clearly examines research methodology, source of date, method of data collection, analysis of data collection and finding of the study.
Chapter four, this vividly takes a look at the history of monetary policy and the objective of the policy also the instrument used in monetary policy and finally effect of monetary policy on financial institution.
Chapter five, this chapter contains summary, conclusion.
Recommendation

---

CHAPTER TWO: The chapter one of this work has been displayed above. The complete chapter two of "effect of open market operation as tools of monetary policy of the central bank of nigeria in controlling the economy" is also available. Order full work to download. Chapter two of "effect of open market operation as tools of monetary policy of the central bank of nigeria in controlling the economy" consists of the literature review. In this chapter all the related work on "effect of open market operation as tools of monetary policy of the central bank of nigeria in controlling the economy" was reviewed.

CHAPTER THREE: The complete chapter three of "effect of open market operation as tools of monetary policy of the central bank of nigeria in controlling the economy" is available. Order full work to download. Chapter three of "effect of open market operation as tools of monetary policy of the central bank of nigeria in controlling the economy" consists of the methodology. In this chapter all the method used in carrying out this work was discussed.

CHAPTER FOUR: The complete chapter four of "effect of open market operation as tools of monetary policy of the central bank of nigeria in controlling the economy" is available. Order full work to download. Chapter four of "effect of open market operation as tools of monetary policy of the central bank of nigeria in controlling the economy" consists of all the test conducted during the work and the result gotten after the whole work

CHAPTER FIVE: The complete chapter five of design and construction of a "effect of open market operation as tools of monetary policy of the central bank of nigeria in controlling the economy" is available. Order full work to download. Chapter five of "effect of open market operation as tools of monetary policy of the central bank of nigeria in controlling the economy" consist of conclusion, recommendation and references.

 

---

To "DOWNLOAD" the complete material on this particular topic above click "HERE"

Do you want our Bank Accounts? please click HERE

To view other related topics click HERE

To "SUMMIT" new topic(s), develop a new topic OR you did not see your topic on our site but want to confirm the availiability of your topic click HERE

Do you want us to research your new topic? if yes, click "HERE"

Do you have any question concerning our post/services? click HERE for answers to your questions

---

For more information contact us through any of the following means:

Mobile No :+2348146561114 or +2347015391124 [Mr. Innocent]

Email address :engr4project@gmail.com

Watsapp No :+2348146561114

---

COUNTRIES THAT FOUND OUR SERVICES USEFUL

Australia, Botswana, Canada, Europe, Ghana, Ireland, India, Kenya, Liberia, Malaysia, Namibia, New Zealand, Nigeria, Pakistan, Philippines, Singapore, Sierra Leone, South Africa, Uganda, United States, United Kindom, Zambia, Zimbabwe, etc
Support: +234 8146561114 or +2347015391124

Watsapp No :+2348146561114

Email Address :engr4project@gmail.com

---

FOLLOW / VISIT US VIA: