Post Utme Unn 2018 Economics Question 26

Practice objective / multiple choice question 26 from the 2018 Post Utme Unn Economics examination.

Post Utme Unn 2018 Economics Objective / Multiple Choice
Question 26 POST_UTME_UNN • 2018 • ECONOMICS • objective

Consider a country with a fixed money supply of ₦100 billion and a central bank that uses a monetary policy of reserve requirement to control inflation. If the reserve requirement is increased from 20% to 25%, what will be the effect on the money supply?

Answer Options

A. The money supply will decrease by ₦5 billion
B. The money supply will increase by ₦5 billion
Correct Answer C. The money supply will remain unchanged
D. The money supply will increase by ₦10 billion
Correct Answer
C
Correct Option:
The money supply will remain unchanged

About This Question

This is Post Utme Unn 2018 Economics Question 26. It is one of the objective questions from the 2018 Post Utme Unn Economics examination.

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