Post Utme Unilag 2023 Economics Question 8

Practice objective / multiple choice question 8 from the 2023 Post Utme Unilag Economics examination.

Post Utme Unilag 2023 Economics Objective / Multiple Choice
Question 8 POST_UTME_UNILAG • 2023 • ECONOMICS • objective

A central bank uses open market operations to increase the money supply in an economy. What is the effect of this action on the interest rate?

Answer Options

A. The interest rate will increase
Correct Answer B. The interest rate will decrease
C. The interest rate will remain unchanged
D. The interest rate will fluctuate
Correct Answer
B
Correct Option:
The interest rate will decrease

About This Question

This is Post Utme Unilag 2023 Economics Question 8. It is one of the objective questions from the 2023 Post Utme Unilag Economics examination.

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