Post Utme Ui 2021 Economics Question 10

Practice objective / multiple choice question 10 from the 2021 Post Utme Ui Economics examination.

Post Utme Ui 2021 Economics Objective / Multiple Choice
Question 10 POST_UTME_UI • 2021 • ECONOMICS • objective

A country is experiencing high inflation, and the government is considering implementing a monetary policy to reduce inflation. The government has two options: Option A, which involves increa\sing the reserve requirement for commercial banks, or Option B, which involves increa\sing the discount rate. Which option is more likely to reduce inflation?

Answer Options

A. Option A is more likely to reduce inflation.
Correct Answer B. Option B is more likely to reduce inflation.
C. Both options are equally likely to reduce inflation.
D. Neither option is likely to reduce inflation.
Correct Answer
B
Correct Option:
Option B is more likely to reduce inflation.

About This Question

This is Post Utme Ui 2021 Economics Question 10. It is one of the objective questions from the 2021 Post Utme Ui Economics examination.

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