Post Utme Bells University 2017 Economics Question 40

Practice objective / multiple choice question 40 from the 2017 Post Utme Bells University Economics examination.

Post Utme Bells University 2017 Economics Objective / Multiple Choice
Question 40 POST_UTME_BELLS_UNIVERSITY • 2017 • 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 the same.
D. The money supply becomes negative.
Correct Answer
B
Correct Option:
The money supply decreases.

About This Question

This is Post Utme Bells University 2017 Economics Question 40. It is one of the objective questions from the 2017 Post Utme Bells University Economics examination.

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