Post Utme Ui 2018 Economics Question 11

Practice objective / multiple choice question 11 from the 2018 Post Utme Ui Economics examination.

Post Utme Ui 2018 Economics Objective / Multiple Choice

Question 11 POST_UTME_UI • 2018 • ECONOMICS • objective

The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to increase the money supply in the economy. If the CBN buys government securities worth ₦1 billion from commercial banks, what is the likely effect on the money supply?

A. The money supply decreases

Correct Answer B. The money supply increases

C. The money supply remains unchanged

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

Correct Answer

Correct Option:

The money supply increases

This is Post Utme Ui 2018 Economics Question 11. It is one of the objective questions from the 2018 Post Utme Ui Economics examination.

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