Post Utme Abu 2021 Economics Question 28

Practice objective / multiple choice question 28 from the 2021 Post Utme Abu Economics examination.

Post Utme Abu 2021 Economics Objective / Multiple Choice
Question 28 POST_UTME_ABU • 2021 • ECONOMICS • objective

A central bank implements an expansionary monetary policy by lowering the reserve requirement for commercial banks. What would be the expected effect on the money supply?

Answer Options

A. Money supply would decrease
Correct Answer B. Money supply would increase
C. Money supply would remain unchanged
D. Money supply would fluctuate randomly
Correct Answer
B
Correct Option:
Money supply would increase

About This Question

This is Post Utme Abu 2021 Economics Question 28. It is one of the objective questions from the 2021 Post Utme Abu Economics examination.

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