Post Utme Pan Atlantic University 2018 Economics Question 31

Practice objective / multiple choice question 31 from the 2018 Post Utme Pan Atlantic University Economics examination.

Post Utme Pan Atlantic University 2018 Economics Objective / Multiple Choice
Question 31 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2018 • 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. If the reserve requirement is increased from 10% to 15%, what will be the effect on the money supply in the short run?

Answer Options

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

About This Question

This is Post Utme Pan Atlantic University 2018 Economics Question 31. It is one of the objective questions from the 2018 Post Utme Pan Atlantic University Economics examination.

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