Waec Model Questions Vol1 2023 Economics Question 21
Practice objective / multiple choice question 21 from the 2023 Waec Model Questions Vol1 Economics examination.
The Central Bank of Nigeria purchases government securities worth N400 million, paying by crediting the reserves of commercial banks. The required reserve ratio is 15% and the public holds currency equal to 20% of deposits. Assuming banks lend out all excess reserves, what is the increase in the money supply (in millions of Naira) resulting from this open‑market operation? Round your answer to two decimal places.
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About This Question
This is Waec Model Questions Vol1 2023 Economics Question 21. It is one of the objective questions from the 2023 Waec Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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