Post Utme Elizade University 2023 Economics Question 16

Practice objective / multiple choice question 16 from the 2023 Post Utme Elizade University Economics examination.

Post Utme Elizade University 2023 Economics Objective / Multiple Choice
Question 16 POST_UTME_ELIZADE_UNIVERSITY • 2023 • ECONOMICS • objective

The Central Bank of Nigeria (CBN) has introduced a new monetary policy aimed at reducing inflation. The policy involves increa\sing the reserve requirement for commercial banks. What is the likely effect of this policy on the money supply?

Answer Options

A. Increase the money supply
Correct Answer B. Decrease the money supply
C. Have no effect on the money supply
D. Increase the interest rate
Correct Answer
B
Correct Option:
Decrease the money supply

About This Question

This is Post Utme Elizade University 2023 Economics Question 16. It is one of the objective questions from the 2023 Post Utme Elizade University Economics examination.

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