Waec Model Questions Vol1 2017 Economics Question 25
Practice objective / multiple choice question 25 from the 2017 Waec Model Questions Vol1 Economics examination.
The Central Bank raises the reserve requirement ratio from 10% to 12%. Before the change, total deposits in the banking system amount to ₦5,000,000. Assuming the amount of reserves held by banks does not change, what is the maximum possible change in total deposits (i.e., the change in total credit creation) that can result from this policy change? Express your answer as a decrease in naira, rounded to the nearest naira.
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About This Question
This is Waec Model Questions Vol1 2017 Economics Question 25. It is one of the objective questions from the 2017 Waec Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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