Post Utme Achievers University 2025 Economics Question 4

Practice objective / multiple choice question 4 from the 2025 Post Utme Achievers University Economics examination.

Post Utme Achievers University 2025 Economics Objective / Multiple Choice
Question 4 POST_UTME_ACHIEVERS_UNIVERSITY • 2025 • ECONOMICS • objective

A central bank uses the following monetary policy tools to control inflation:\n\n| Tool | Effect on Inflation |\n| --- | --- | --- |\n| Open Market Operations | Reduces inflation |\n| Reserve Requirements | Reduces inflation |\n| Discount Rate | Increases inflation |\n\nWhat is the effect of increa\sing the discount rate on inflation?

Answer Options

A. Reduces inflation
Correct Answer B. Increases inflation
C. Has no effect on inflation
D. Decreases inflation
Correct Answer
B
Correct Option:
Increases inflation

About This Question

This is Post Utme Achievers University 2025 Economics Question 4. It is one of the objective questions from the 2025 Post Utme Achievers University Economics examination.

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