Post Utme Aaua 2023 Economics Question 7

Practice objective / multiple choice question 7 from the 2023 Post Utme Aaua Economics examination.

Post Utme Aaua 2023 Economics Objective / Multiple Choice
Question 7 POST_UTME_AAUA • 2023 • ECONOMICS • objective

A central bank is considering a monetary policy to reduce inflation. It can either increase the reserve requirement or decrease the money supply. Which policy would be more effective in reducing inflation?

Answer Options

A. Increa\sing the reserve requirement
Correct Answer B. Decrea\sing the money supply
C. Both are equally effective
D. Neither is effective
Correct Answer
B
Correct Option:
Decrea\sing the money supply

About This Question

This is Post Utme Aaua 2023 Economics Question 7. It is one of the objective questions from the 2023 Post Utme Aaua Economics examination.

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