Post Utme Christopher University 2023 Economics Question 38

Practice objective / multiple choice question 38 from the 2023 Post Utme Christopher University Economics examination.

Post Utme Christopher University 2023 Economics Objective / Multiple Choice
Question 38 POST_UTME_CHRISTOPHER_UNIVERSITY • 2023 • ECONOMICS • objective

The Central Bank of Nigeria has increased the reserve requirement for commercial banks from 10% to 15%. U\sing the concept of money supply, explain how this policy affects the money supply in the economy.

Answer Options

A. The policy decreases the money supply in the economy.
Correct Answer B. The policy increases the money supply in the economy.
C. The policy has no effect on the money supply in the economy.
D. The policy decreases the money supply in the economy due to the decrease in the money multiplier.
Correct Answer
B
Correct Option:
The policy increases the money supply in the economy.

About This Question

This is Post Utme Christopher University 2023 Economics Question 38. It is one of the objective questions from the 2023 Post Utme Christopher University Economics examination.

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