Post Utme Greenfield University 2018 Economics Question 19

Practice objective / multiple choice question 19 from the 2018 Post Utme Greenfield University Economics examination.

Post Utme Greenfield University 2018 Economics Objective / Multiple Choice

Question 19 POST_UTME_GREENFIELD_UNIVERSITY • 2018 • ECONOMICS • objective

A central bank uses the following monetary policy tool to reduce inflation: it sells government securities on the open market. What is the likely effect of this action on the money supply?

Answer Options

Correct Answer A. The money supply decreases.

B. The money supply increases.

C. The money supply remains unchanged.

D. The money supply becomes perfectly elastic.

Correct Answer

Correct Option:

The money supply decreases.

About This Question

This is Post Utme Greenfield University 2018 Economics Question 19. It is one of the objective questions from the 2018 Post Utme Greenfield University Economics examination.

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