Post Utme Oau 2023 Economics Question 21

Practice objective / multiple choice question 21 from the 2023 Post Utme Oau Economics examination.

Post Utme Oau 2023 Economics Objective / Multiple Choice
Question 21 POST_UTME_OAU • 2023 • ECONOMICS • objective

The Central Bank of Nigeria (CBN) has implemented a monetary policy aimed at reducing inflation. The policy involves increa\sing the reserve requirement for commercial banks. What is the likely effect of this policy on the money supply?

Answer Options

A. The money supply will increase, leading to higher inflation.
Correct Answer B. The money supply will decrease, leading to lower inflation.
C. The money supply will remain unchanged.
D. The policy will have no effect on the money supply.
Correct Answer
B
Correct Option:
The money supply will decrease, leading to lower inflation.

About This Question

This is Post Utme Oau 2023 Economics Question 21. It is one of the objective questions from the 2023 Post Utme Oau Economics examination.

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