An increase in both the legal reserve ratio and discount rate has the effect of?...
ECONOMICS
JAMB 1994
An increase in both the legal reserve ratio and discount rate has the effect of?
- A. increasing the quantity of money in circulation
- B. decreasing the quantity of money in circulation
- C. increasing the value of money
- D. decreasing the value of money
Correct Answer: B. decreasing the quantity of money in circulation
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