Post Utme Abu 2023 Economics Question 18

Practice objective / multiple choice question 18 from the 2023 Post Utme Abu Economics examination.

Post Utme Abu 2023 Economics Objective / Multiple Choice
Question 18 POST_UTME_ABU • 2023 • ECONOMICS • objective

The Central Bank of Nigeria (CBN) has implemented a monetary policy to reduce inflation. The policy involves increa\sing the reserve requirement for commercial banks. What is the likely effect of this policy on the money supply?

Answer Options

A. Increase in money supply
Correct Answer B. Decrease in money supply
C. No change in money supply
D. Increase in interest rates
Correct Answer
B
Correct Option:
Decrease in money supply

About This Question

This is Post Utme Abu 2023 Economics Question 18. It is one of the objective questions from the 2023 Post Utme Abu Economics examination.

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