Post Utme Lasu 2024 Economics Question 23

Practice objective / multiple choice question 23 from the 2024 Post Utme Lasu Economics examination.

Post Utme Lasu 2024 Economics Objective / Multiple Choice
Question 23 POST_UTME_LASU • 2024 • ECONOMICS • objective

A central bank uses monetary policy to control inflation by increa\sing the reserve requirement for commercial banks. This action will lead to a decrease in the money supply and a decrease in the price level. Which of the following statements is correct?

Answer Options

A. The money supply will decrease and the price level will increase.
B. The money supply will increase and the price level will decrease.
Correct Answer C. The money supply will decrease and the price level will decrease.
D. The money supply will increase and the price level will increase.
Correct Answer
C
Correct Option:
The money supply will decrease and the price level will decrease.

About This Question

This is Post Utme Lasu 2024 Economics Question 23. It is one of the objective questions from the 2024 Post Utme Lasu Economics examination.

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