Post Utme Bells University 2023 Economics Question 30

Practice objective / multiple choice question 30 from the 2023 Post Utme Bells University Economics examination.

Post Utme Bells University 2023 Economics Objective / Multiple Choice
Question 30 POST_UTME_BELLS_UNIVERSITY • 2023 • ECONOMICS • objective

A central bank uses open market operations to increase the money supply. Which of the following is a correct effect of this action?

Answer Options

A. The interest rate will decrease, and the exchange rate will appreciate.
B. The interest rate will increase, and the exchange rate will depreciate.
Correct Answer C. The money supply will increase, and the interest rate will decrease.
D. The money supply will decrease, and the interest rate will increase.
Correct Answer
C
Correct Option:
The money supply will increase, and the interest rate will decrease.

About This Question

This is Post Utme Bells University 2023 Economics Question 30. It is one of the objective questions from the 2023 Post Utme Bells University Economics examination.

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