Post Utme Esut 2018 Economics Question 23

Practice objective / multiple choice question 23 from the 2018 Post Utme Esut Economics examination.

Post Utme Esut 2018 Economics Objective / Multiple Choice
Question 23 POST_UTME_ESUT • 2018 • ECONOMICS • objective

A central bank implements a monetary policy by increa\sing the reserve requirement for commercial banks. What is the likely effect on 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 unchanged.
D. The money supply will be affected only if the commercial banks are owned by the central bank.
Correct Answer
B
Correct Option:
The money supply will decrease.

About This Question

This is Post Utme Esut 2018 Economics Question 23. It is one of the objective questions from the 2018 Post Utme Esut Economics examination.

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