Post Utme Lasu 2017 Economics Question 17

Practice objective / multiple choice question 17 from the 2017 Post Utme Lasu Economics examination.

Post Utme Lasu 2017 Economics Objective / Multiple Choice
Question 17 POST_UTME_LASU • 2017 • ECONOMICS • objective

A central bank is considering a monetary policy to reduce inflation. If the central bank increases the reserve requirement for commercial banks, what will be the effect on the money supply?

Answer Options

A. The money supply will increase.
Correct Answer B. The money supply will decrease.
C. The money supply will remain unchanged.
D. The money supply will increase at a decrea\sing rate.
Correct Answer
B
Correct Option:
The money supply will decrease.

About This Question

This is Post Utme Lasu 2017 Economics Question 17. It is one of the objective questions from the 2017 Post Utme Lasu Economics examination.

View More Post Utme Lasu 2017 Economics Questions More Post Utme Lasu Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support