Post Utme Uniosun 2023 Economics Question 14

Practice objective / multiple choice question 14 from the 2023 Post Utme Uniosun Economics examination.

Post Utme Uniosun 2023 Economics Objective / Multiple Choice
Question 14 POST_UTME_UNIOSUN • 2023 • ECONOMICS • objective

A central bank is u\sing monetary policy to stabilize the economy. If the central bank increases the reserve requirement for commercial banks, what is the likely effect on the money supply?

Answer Options

A. The money supply will increase
Correct Answer B. The money supply will decrease
C. The money supply will remain unchanged
D. The money supply will increase, but at a decrea\sing rate
Correct Answer
B
Correct Option:
The money supply will decrease

About This Question

This is Post Utme Uniosun 2023 Economics Question 14. It is one of the objective questions from the 2023 Post Utme Uniosun Economics examination.

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