Post Utme Joseph Ayo Babalola University 2020 Economics Question 22

Practice objective / multiple choice question 22 from the 2020 Post Utme Joseph Ayo Babalola University Economics examination.

Post Utme Joseph Ayo Babalola University 2020 Economics Objective / Multiple Choice

Question 22 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2020 • ECONOMICS • objective

A central bank uses open market operations to increase the money supply. What is the effect on the interest rate?

Answer Options

A. The interest rate increases.

Correct Answer B. The interest rate decreases.

C. The interest rate remains unchanged.

D. The interest rate becomes negative.

Correct Answer

Correct Option:

The interest rate decreases.

About This Question

This is Post Utme Joseph Ayo Babalola University 2020 Economics Question 22. It is one of the objective questions from the 2020 Post Utme Joseph Ayo Babalola University Economics examination.

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