Waec Model Questions Vol1 2019 Economics Question 21

Practice objective / multiple choice question 21 from the 2019 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2019 Economics Objective / Multiple Choice Medium Difficulty
Question 21 WAEC_MODEL_QUESTIONS_VOL1 • 2019 • ECONOMICS • objective

The Central Bank wants to increase the money supply by ₦500 million. The required reserve ratio is 10% and the public holds 25% of deposits as cash (currency‑deposit ratio = 0.25). How much must the Central Bank inject through open‑market purchases to achieve the target increase?

Answer Options

A. ₦100 million
B. ₦160 million
C. ₦120 million
Correct Answer D. ₦140 million
Correct Answer
D
Correct Option:
₦140 million

About This Question

This is Waec Model Questions Vol1 2019 Economics Question 21. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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