Post Utme Futa 2023 Economics Question 1

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

Post Utme Futa 2023 Economics Objective / Multiple Choice

Question 1 POST_UTME_FUTA • 2023 • ECONOMICS • objective

Consider a country with a fixed exchange rate regime. If the country's central bank sells foreign exchange to importers, what is the likely effect on the domestic money supply?

Correct Answer A. Increase in the domestic money supply

B. Decrease in the domestic money supply

C. No effect on the domestic money supply

D. Increase in the foreign exchange reserves

Correct Answer

Correct Option:

Increase in the domestic money supply

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

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