Post Utme Madonna University 2020 Economics Question 3

Practice objective / multiple choice question 3 from the 2020 Post Utme Madonna University Economics examination.

Post Utme Madonna University 2020 Economics Objective / Multiple Choice

Question 3 POST_UTME_MADONNA_UNIVERSITY • 2020 • ECONOMICS • objective

A central bank uses an open market operation to increase the money supply. What is the effect on the interest rate?

Answer Options

A. The interest rate will increase.

Correct Answer B. The interest rate will decrease.

C. The interest rate will remain cons\tant.

D. The effect on the interest rate is ambiguous.

Correct Answer

Correct Option:

The interest rate will decrease.

About This Question

This is Post Utme Madonna University 2020 Economics Question 3. It is one of the objective questions from the 2020 Post Utme Madonna University Economics examination.

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