Post Utme Bowen University 2022 Economics Question 18

Practice objective / multiple choice question 18 from the 2022 Post Utme Bowen University Economics examination.

Post Utme Bowen University 2022 Economics Objective / Multiple Choice

Question 18 POST_UTME_BOWEN_UNIVERSITY • 2022 • ECONOMICS • objective

A central bank uses monetary policy to reduce inflation. If the central bank increases the reserve requirement for commercial banks, what will happen to the money supply?

Answer Options

A. The money supply will increase.

Correct Answer B. The money supply will decrease.

C. The money supply will remain the same.

D. The money supply will fluctuate.

Correct Answer

Correct Option:

The money supply will decrease.

About This Question

This is Post Utme Bowen University 2022 Economics Question 18. It is one of the objective questions from the 2022 Post Utme Bowen University Economics examination.

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