Post Utme Summit University 2019 Economics Question 2

Practice objective / multiple choice question 2 from the 2019 Post Utme Summit University Economics examination.

Post Utme Summit University 2019 Economics Objective / Multiple Choice
Question 2 POST_UTME_SUMMIT_UNIVERSITY • 2019 • ECONOMICS • objective

A government is considering a policy to reduce inflation by increa\sing the reserve requirement for commercial banks. If the current reserve requirement is 10% and the government increases it to 15%, what is the expected effect on the money supply?

Answer Options

A. Increase
Correct Answer B. Decrease
C. No change
D. Uncertain
Correct Answer
B
Correct Option:
Decrease

About This Question

This is Post Utme Summit University 2019 Economics Question 2. It is one of the objective questions from the 2019 Post Utme Summit University Economics examination.

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