Post Utme Ims U 2017 Economics Question 7

Practice objective / multiple choice question 7 from the 2017 Post Utme Ims U Economics examination.

Post Utme Ims U 2017 Economics Objective / Multiple Choice
Question 7 POST_UTME_IMS_U • 2017 • ECONOMICS • objective

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

Answer Options

A. Money supply will increase
Correct Answer B. Money supply will decrease
C. Money supply will remain unchanged
D. Money supply will increase in the short run but decrease in the long run
Correct Answer
B
Correct Option:
Money supply will decrease

About This Question

This is Post Utme Ims U 2017 Economics Question 7. It is one of the objective questions from the 2017 Post Utme Ims U Economics examination.

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