Post Utme Eksu 2018 Economics Question 8

Practice objective / multiple choice question 8 from the 2018 Post Utme Eksu Economics examination.

Post Utme Eksu 2018 Economics Objective / Multiple Choice
Question 8 POST_UTME_EKSU • 2018 • ECONOMICS • objective

The money supply in an economy is determined by the central bank. Which of the following is a correct statement regarding the relationship between the money supply and the interest rate?

Answer Options

Correct Answer A. An increase in the money supply leads to a decrease in the interest rate.
B. A decrease in the money supply leads to an increase in the interest rate.
C. The money supply has no effect on the interest rate.
D. The interest rate has no effect on the money supply.
Correct Answer
A
Correct Option:
An increase in the money supply leads to a decrease in the interest rate.

About This Question

This is Post Utme Eksu 2018 Economics Question 8. It is one of the objective questions from the 2018 Post Utme Eksu Economics examination.

View More Post Utme Eksu 2018 Economics Questions More Post Utme Eksu Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support