Post Utme Nile University 2019 Economics Question 13

Practice objective / multiple choice question 13 from the 2019 Post Utme Nile University Economics examination.

Post Utme Nile University 2019 Economics Objective / Multiple Choice
Question 13 POST_UTME_NILE_UNIVERSITY • 2019 • ECONOMICS • objective

A central bank uses the following monetary policy tools to control inflation: open market operations, reserve requirements, and discount rate. Which of the following is NOT a direct effect of an increase in the discount rate?

Answer Options

A. Reduced borrowing \costs for commercial banks.
B. Increased reserve requirements for commercial banks.
C. Increased interest rates for consumers.
Correct Answer D. Increased money supply in the economy.
Correct Answer
D
Correct Option:
Increased money supply in the economy.

About This Question

This is Post Utme Nile University 2019 Economics Question 13. It is one of the objective questions from the 2019 Post Utme Nile University Economics examination.

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