Post Utme Madonna University 2018 Economics Question 22

Practice objective / multiple choice question 22 from the 2018 Post Utme Madonna University Economics examination.

Post Utme Madonna University 2018 Economics Objective / Multiple Choice
Question 22 POST_UTME_MADONNA_UNIVERSITY • 2018 • ECONOMICS • objective

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

Answer Options

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

About This Question

This is Post Utme Madonna University 2018 Economics Question 22. It is one of the objective questions from the 2018 Post Utme Madonna University Economics examination.

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