Post Utme Madonna University 2017 Economics Question 21

Practice objective / multiple choice question 21 from the 2017 Post Utme Madonna University Economics examination.

Post Utme Madonna University 2017 Economics Objective / Multiple Choice
Question 21 POST_UTME_MADONNA_UNIVERSITY • 2017 • ECONOMICS • objective

The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to increase the money supply in the economy. What is the effect of this action 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
B
Correct Option:
The interest rate decreases

About This Question

This is Post Utme Madonna University 2017 Economics Question 21. It is one of the objective questions from the 2017 Post Utme Madonna University Economics examination.

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