Post Utme Bells University 2023 Economics Question 5

Practice objective / multiple choice question 5 from the 2023 Post Utme Bells University Economics examination.

Post Utme Bells University 2023 Economics Objective / Multiple Choice
Question 5 POST_UTME_BELLS_UNIVERSITY • 2023 • ECONOMICS • objective

A country's central bank is considering a monetary policy to reduce inflation. The central bank can either increase the reserve requirement or decrease the discount rate. Which policy is more effective in reducing inflation?

Answer Options

Correct Answer A. Increa\sing the reserve requirement
B. Decrea\sing the discount rate
C. Both policies are equally effective
D. Neither policy is effective
Correct Answer
A
Correct Option:
Increa\sing the reserve requirement

About This Question

This is Post Utme Bells University 2023 Economics Question 5. It is one of the objective questions from the 2023 Post Utme Bells University Economics examination.

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