Post Utme Rsu 2023 Economics Question 32

Practice objective / multiple choice question 32 from the 2023 Post Utme Rsu Economics examination.

Post Utme Rsu 2023 Economics Objective / Multiple Choice
Question 32 POST_UTME_RSU • 2023 • ECONOMICS • objective

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

Answer Options

A. Increase in money supply
Correct Answer B. Decrease in money supply
C. No change in money supply
D. Increase in interest rates
Correct Answer
B
Correct Option:
Decrease in money supply

About This Question

This is Post Utme Rsu 2023 Economics Question 32. It is one of the objective questions from the 2023 Post Utme Rsu Economics examination.

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