Post Utme Aaua 2017 Economics Question 14

Practice objective / multiple choice question 14 from the 2017 Post Utme Aaua Economics examination.

Post Utme Aaua 2017 Economics Objective / Multiple Choice
Question 14 POST_UTME_AAUA • 2017 • ECONOMICS • objective

A central bank increases the reserve requirement for commercial banks from 10% to 15%. What is the effect on the money supply?

Answer Options

A. Increases
Correct Answer B. Decreases
C. Remains unchanged
D. Increases initially, then decreases
Correct Answer
B
Correct Option:
Decreases

About This Question

This is Post Utme Aaua 2017 Economics Question 14. It is one of the objective questions from the 2017 Post Utme Aaua Economics examination.

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