Post Utme Elizade University 2019 Economics Question 21

Practice objective / multiple choice question 21 from the 2019 Post Utme Elizade University Economics examination.

Post Utme Elizade University 2019 Economics Objective / Multiple Choice
Question 21 POST_UTME_ELIZADE_UNIVERSITY • 2019 • ECONOMICS • objective

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

Answer Options

Correct Answer A. Money supply decreases by 10%
B. Money supply increases by 10%
C. Money supply remains unchanged
D. Money supply decreases by 5%
Correct Answer
A
Correct Option:
Money supply decreases by 10%

About This Question

This is Post Utme Elizade University 2019 Economics Question 21. It is one of the objective questions from the 2019 Post Utme Elizade University Economics examination.

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