Post Utme Futa 2017 Economics Question 5

Practice objective / multiple choice question 5 from the 2017 Post Utme Futa Economics examination.

Post Utme Futa 2017 Economics Objective / Multiple Choice
Question 5 POST_UTME_FUTA • 2017 • ECONOMICS • objective

A central bank increases the reserve requirement for commercial banks. What is the effect on the money supply?

Answer Options

A. The money supply increases.
Correct Answer B. The money supply decreases.
C. The money supply remains unchanged.
D. The money supply becomes perfectly elastic.
Correct Answer
B
Correct Option:
The money supply decreases.

About This Question

This is Post Utme Futa 2017 Economics Question 5. It is one of the objective questions from the 2017 Post Utme Futa Economics examination.

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