Post Utme Coal City University 2021 Economics Question 16

Practice objective / multiple choice question 16 from the 2021 Post Utme Coal City University Economics examination.

Post Utme Coal City University 2021 Economics Objective / Multiple Choice
Question 16 POST_UTME_COAL_CITY_UNIVERSITY • 2021 • ECONOMICS • objective

The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to increase the money supply in the economy. If the CBN buys government securities from commercial banks, what is the effect on the money supply?

Answer Options

A. The money supply decreases
Correct Answer B. The money supply increases
C. The money supply remains unchanged
D. The money supply decreases in the short run but increases in the long run
Correct Answer
B
Correct Option:
The money supply increases

About This Question

This is Post Utme Coal City University 2021 Economics Question 16. It is one of the objective questions from the 2021 Post Utme Coal City University Economics examination.

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