Post Utme Madonna University 2017 Economics Question 6

Practice objective / multiple choice question 6 from the 2017 Post Utme Madonna University Economics examination.

Post Utme Madonna University 2017 Economics Objective / Multiple Choice
Question 6 POST_UTME_MADONNA_UNIVERSITY • 2017 • ECONOMICS • objective

The Central Bank of Nigeria (CBN) has introduced a new monetary policy aimed at reducing inflation. The policy involves increa\sing the reserve requirement for commercial banks. Assuming the reserve requirement is increased from 10% to 15%, what will be the effect on the money supply in the short run?

Answer Options

A. The money supply will decrease
B. The money supply will increase
Correct Answer C. The money supply will remain unchanged
D. The effect on the money supply is uncertain
Correct Answer
C
Correct Option:
The money supply will remain unchanged

About This Question

This is Post Utme Madonna University 2017 Economics Question 6. It is one of the objective questions from the 2017 Post Utme Madonna University Economics examination.

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