Post Utme Caleb University 2023 Economics Question 16

Practice objective / multiple choice question 16 from the 2023 Post Utme Caleb University Economics examination.

Post Utme Caleb University 2023 Economics Objective / Multiple Choice
Question 16 POST_UTME_CALEB_UNIVERSITY • 2023 • ECONOMICS • objective

The Central Bank of Nigeria (CBN) uses the monetary policy instrument of reserve requirement to control the money supply in the economy. If the CBN increases the reserve requirement ratio from 10% to 15%, what will be the effect on the money multiplier?

Answer Options

A. The money multiplier will increase
Correct Answer B. The money multiplier will decrease
C. The money multiplier will remain unchanged
D. The money multiplier will increase by 50%
Correct Answer
B
Correct Option:
The money multiplier will decrease

About This Question

This is Post Utme Caleb University 2023 Economics Question 16. It is one of the objective questions from the 2023 Post Utme Caleb University Economics examination.

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