Post Utme Unilorin 2021 Economics Question 38

Practice objective / multiple choice question 38 from the 2021 Post Utme Unilorin Economics examination.

Post Utme Unilorin 2021 Economics Objective / Multiple Choice
Question 38 POST_UTME_UNILORIN • 2021 • ECONOMICS • objective

A central bank uses the following monetary policy tool to control inflation: increa\sing the reserve requirement for commercial banks. What is the effect of this policy on the money supply?

Answer Options

A. Increases the money supply
Correct Answer B. Decreases the money supply
C. Has no effect on the money supply
D. Increases the velocity of money
Correct Answer
B
Correct Option:
Decreases the money supply

About This Question

This is Post Utme Unilorin 2021 Economics Question 38. It is one of the objective questions from the 2021 Post Utme Unilorin Economics examination.

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