Post Utme Elizade University 2023 Economics Question 1

Practice objective / multiple choice question 1 from the 2023 Post Utme Elizade University Economics examination.

Post Utme Elizade University 2023 Economics Objective / Multiple Choice

Question 1 POST_UTME_ELIZADE_UNIVERSITY • 2023 • ECONOMICS • objective

Consider a country with a fixed money supply and a moderate rate of inflation. If the central bank increases the reserve requirement for commercial banks, what will be the effect on the money supply?

Answer Options

Correct Answer A. The money supply will decrease.

B. The money supply will increase.

C. The money supply will remain unchanged.

D. The effect on the money supply is uncertain.

Correct Answer

Correct Option:

The money supply will decrease.

About This Question

This is Post Utme Elizade University 2023 Economics Question 1. It is one of the objective questions from the 2023 Post Utme Elizade University Economics examination.

View More Post Utme Elizade University 2023 Economics Questions More Post Utme Elizade University 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