Post Utme Osustech 2021 Economics Question 25

Practice objective / multiple choice question 25 from the 2021 Post Utme Osustech Economics examination.

Post Utme Osustech 2021 Economics Objective / Multiple Choice

Question 25 POST_UTME_OSUSTECH • 2021 • ECONOMICS • objective

A central bank is considering implementing a monetary policy to control inflation. If the central bank increases the reserve requirement for commercial banks, what is the likely effect on the money supply?

Answer Options

A. The money supply increases

Correct Answer B. The money supply decreases

C. The money supply remains unchanged

D. The money supply increases in the short run but decreases in the long run

Correct Answer

Correct Option:

The money supply decreases

About This Question

This is Post Utme Osustech 2021 Economics Question 25. It is one of the objective questions from the 2021 Post Utme Osustech Economics examination.

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