Post Utme Abu 2020 Economics Question 3

Practice objective / multiple choice question 3 from the 2020 Post Utme Abu Economics examination.

Post Utme Abu 2020 Economics Objective / Multiple Choice
Question 3 POST_UTME_ABU • 2020 • ECONOMICS • objective

A central bank increases the reserve requirement for commercial banks. What is the effect on the money supply?

Answer Options

A. The money supply increases.
Correct Answer B. The money supply decreases.
C. The money supply remains cons\tant.
D. The money supply fluctuates.
Correct Answer
B
Correct Option:
The money supply decreases.

About This Question

This is Post Utme Abu 2020 Economics Question 3. It is one of the objective questions from the 2020 Post Utme Abu Economics examination.

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