Post Utme Unn 2020 Economics Question 14

Practice objective / multiple choice question 14 from the 2020 Post Utme Unn Economics examination.

Post Utme Unn 2020 Economics Objective / Multiple Choice
Question 14 POST_UTME_UNN • 2020 • ECONOMICS • objective

Consider a country with a fixed exchange rate regime. If the country's central bank wants to increase the money supply, what is the most likely action it would take?

Answer Options

A. Increase the reserve requirement
B. Decrease the discount rate
Correct Answer C. Increase the money supply by buying government securities
D. Increase the exchange rate
Correct Answer
C
Correct Option:
Increase the money supply by buying government securities

About This Question

This is Post Utme Unn 2020 Economics Question 14. It is one of the objective questions from the 2020 Post Utme Unn Economics examination.

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