Concept:The Central Bank of Nigeria controls inflation through monetary policy tools such as the discount rate.
Explanation:Inflation occurs when there is too much money in circulation and prices keep rising.
To reduce inflation, the Central Bank can increase the discount rate.
The discount rate is the minimum interest rate at which the central bank lends money to commercial banks.
When the discount rate rises, commercial banks are forced to increase the interest rates they charge their customers.
Higher interest rates encourage people to save and discourage borrowing.
As a result, more money is withdrawn from circulation, and spending reduces.
This reduction in the amount of money available helps to lower inflation.
Tariffs, tax rates, and exchange rates do not fall directly under the Central Bank's monopoly over monetary policy.
Answer:D. Discount rate