Post Utme Covenant University 2023 Economics Question 28

Practice objective / multiple choice question 28 from the 2023 Post Utme Covenant University Economics examination.

Post Utme Covenant University 2023 Economics Objective / Multiple Choice
Question 28 POST_UTME_COVENANT_UNIVERSITY • 2023 • ECONOMICS • objective

The government of Nigeria has implemented a monetary policy to reduce inflation. The policy includes increa\sing the reserve requirement for commercial banks and reducing the money supply. U\sing the concept of the money multiplier, explain how the policy will affect 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
B
Correct Option:
The money supply will decrease.

About This Question

This is Post Utme Covenant University 2023 Economics Question 28. It is one of the objective questions from the 2023 Post Utme Covenant University Economics examination.

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