Post Utme Uniport 2024 Economics Question 18

Practice objective / multiple choice question 18 from the 2024 Post Utme Uniport Economics examination.

Post Utme Uniport 2024 Economics Objective / Multiple Choice
Question 18 POST_UTME_UNIPORT • 2024 • ECONOMICS • objective

The Central Bank of Nigeria (CBN) has implemented a monetary policy aimed at reducing inflation. The policy involves increa\sing the reserve requirement for commercial banks. Which of the following is a likely consequence of this policy?

Answer Options

Correct Answer A. A decrease in the money supply, leading to lower inflation.
B. An increase in the money supply, leading to higher inflation.
C. No change in the money supply, as the reserve requirement is already at its minimum.
D. A decrease in the interest rate, leading to higher inflation.
Correct Answer
A
Correct Option:
A decrease in the money supply, leading to lower inflation.

About This Question

This is Post Utme Uniport 2024 Economics Question 18. It is one of the objective questions from the 2024 Post Utme Uniport Economics examination.

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