Waec Model Questions Vol1 2025 Economics Question 14
Practice objective / multiple choice question 14 from the 2025 Waec Model Questions Vol1 Economics examination.
The Central Bank of Nigeria requires commercial banks to hold a required reserve ratio of 10 %. Banks also keep excess reserves equal to 2 % of deposits, and the public holds cash equal to 15 % of deposits. If the Central Bank injects ₦500 million into the banking system by purchasing government securities, what is the expected increase in the money supply, assuming the multiplier operates fully? Express your answer in millions of Naira, rounded to the nearest million.
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About This Question
This is Waec Model Questions Vol1 2025 Economics Question 14. It is one of the objective questions from the 2025 Waec Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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