TABLE OF CONTENTS
TITLE PAGE I
CERTIFICATION II
DEDICATION III
ACKNOWLEDGEMENT IV
TABLE OF CONTENTS V
CHAPTER ONE
- INTRODUCTION
- STATEMENT OF THE PROBLEM
- RESERACH QUESTION
- OBJECTIVES OF THE STUDY
- RESEARCH HYPOTHESIS
- SIGNIFICANT OF THE STUDY
- SCOPE AND LIMITATION OF THE STUDY
- DEFINITION OF TERMS
- PLAN AND ORGANIZATION OF THE STUDY
CHAPTER TWO
- LITERATURE REVIEW
- HISTORICAL BACKGROUND OF CBN
- INSTRUMENT USED IN MONETARY POLICY
- MONEY SUPPLY AND DETERMINANT
- BANKING CREDIT SYSTEM TO THE ECONOMY
- BANKING CREDIT SYSTEM TO THE PRIVATE SECTOR
- OPEN MARKET OPERATION
CHAPTER THREE
- RESEARCH METHODOLOGY
- SOURCES OF DATA
- METHOD OF DATA COLLECTION
- ANALYSIS OF DATA COLLECTION
- POPULATION OF THE STUDY
- LIMITATION OF THE METHODOLOGY
CHAPTER FOUR
- DATA PRESENTATION, ANALYSIS, AND INTERPRETATION OF RESULT
- DATA PRESENTATION
- DATA ANALYSIS
CHAPTER FIVE
- SUMMARY
- CONCLUSION
- 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:
- Expansion of more commercial bank and liquidation of most financial institution in Nigeria.
- Monetary supply is not controlled in line with the demand in the real sector which heads to a situation of disequilibrium.
- 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.
- 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.
- Monetary policy is also not successful in such countries because bank money comprises a small proportion of the total money supply in the country.