Post Utme Summit University 2022 Economics Question 8

Practice objective / multiple choice question 8 from the 2022 Post Utme Summit University Economics examination.

Post Utme Summit University 2022 Economics Objective / Multiple Choice
Question 8 POST_UTME_SUMMIT_UNIVERSITY • 2022 • ECONOMICS • objective

The money supply in Nigeria is determined by the central bank's monetary policy, which includes the reserve requirement, open market operations, and discount rate. If the central bank increases the reserve requirement from 10% to 15%, what will be 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. Uncertain effect on money supply
Correct Answer
B
Correct Option:
Decrease in money supply

About This Question

This is Post Utme Summit University 2022 Economics Question 8. It is one of the objective questions from the 2022 Post Utme Summit University Economics examination.

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support