Post Utme Greenfield University 2019 Economics Question 2

Practice objective / multiple choice question 2 from the 2019 Post Utme Greenfield University Economics examination.

Post Utme Greenfield University 2019 Economics Objective / Multiple Choice
Question 2 POST_UTME_GREENFIELD_UNIVERSITY • 2019 • ECONOMICS • objective

A central bank can implement monetary policy by buying or selling government securities on the open market. What is the effect of the central bank buying government securities on the money supply?

Answer Options

Correct Answer A. The money supply increases.
B. The money supply decreases.
C. The money supply remains cons\tant.
D. The money supply becomes zero.
Correct Answer
A
Correct Option:
The money supply increases.

About This Question

This is Post Utme Greenfield University 2019 Economics Question 2. It is one of the objective questions from the 2019 Post Utme Greenfield University Economics examination.

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