Post Utme Madonna University 2018 Economics Question 17

Practice objective / multiple choice question 17 from the 2018 Post Utme Madonna University Economics examination.

Post Utme Madonna University 2018 Economics Objective / Multiple Choice
Question 17 POST_UTME_MADONNA_UNIVERSITY • 2018 • ECONOMICS • objective

A central bank can increase the money supply by buying government securities in the open market. What is the effect of this action on the interest rate?

Answer Options

Correct Answer A. The interest rate will decrease.
B. The interest rate will increase.
C. The interest rate will remain unchanged.
D. The interest rate will fluctuate.
Correct Answer
A
Correct Option:
The interest rate will decrease.

About This Question

This is Post Utme Madonna University 2018 Economics Question 17. It is one of the objective questions from the 2018 Post Utme Madonna University Economics examination.

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