Post Utme Noun 2020 Economics Question 1

Practice objective / multiple choice question 1 from the 2020 Post Utme Noun Economics examination.

Post Utme Noun 2020 Economics Objective / Multiple Choice
Question 1 POST_UTME_NOUN • 2020 • ECONOMICS • objective

Consider a country with a fixed money supply and a moderate rate of inflation. If the central bank increases the reserve requirement for commercial banks, what will be the effect on the money supply?

Answer Options

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

About This Question

This is Post Utme Noun 2020 Economics Question 1. It is one of the objective questions from the 2020 Post Utme Noun Economics examination.

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