Waec Model Questions Vol1 2018 Economics Question 12

Practice objective / multiple choice question 12 from the 2018 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2018 Economics Objective / Multiple Choice Medium Difficulty
Question 12 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • objective

In a country the public holds currency equal to 30% of bank deposits. The central bank requires banks to keep 10% of deposits as reserves. If the central bank injects ₦200 million into the banking system through an open‑market purchase, what is the total increase in the money supply?

Answer Options

A. ₦500,000,000
B. ₦600,000,000
Correct Answer C. ₦650,000,000
D. ₦750,000,000
Correct Answer
C
Correct Option:
₦650,000,000

About This Question

This is Waec Model Questions Vol1 2018 Economics Question 12. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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