Post Utme Covenant University 2019 Economics Question 18

Practice objective / multiple choice question 18 from the 2019 Post Utme Covenant University Economics examination.

Post Utme Covenant University 2019 Economics Objective / Multiple Choice
Question 18 POST_UTME_COVENANT_UNIVERSITY • 2019 • ECONOMICS • objective

A central bank increases the reserve requirement for commercial banks from 10% to 15%. What is the effect on the money supply?

Answer Options

A. Increase in money supply
Correct Answer B. Decrease in money supply
C. No change in money supply
D. Increase in interest rates
Correct Answer
B
Correct Option:
Decrease in money supply

About This Question

This is Post Utme Covenant University 2019 Economics Question 18. It is one of the objective questions from the 2019 Post Utme Covenant University Economics examination.

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