Post Utme Afe Babalola University 2020 Economics Question 32

Practice objective / multiple choice question 32 from the 2020 Post Utme Afe Babalola University Economics examination.

Post Utme Afe Babalola University 2020 Economics Objective / Multiple Choice
Question 32 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2020 • ECONOMICS • objective

A central bank uses the following monetary policy tool to control inflation: increa\sing the reserve requirement for commercial banks. What is the effect of this policy on the money supply?

Answer Options

A. Increases
Correct Answer B. Decreases
C. Remains the same
D. Unchanged
Correct Answer
B
Correct Option:
Decreases

About This Question

This is Post Utme Afe Babalola University 2020 Economics Question 32. It is one of the objective questions from the 2020 Post Utme Afe Babalola University Economics examination.

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