Post Utme Wellspring University 2025 Economics Question 20

Practice objective / multiple choice question 20 from the 2025 Post Utme Wellspring University Economics examination.

Post Utme Wellspring University 2025 Economics Objective / Multiple Choice
Question 20 POST_UTME_WELLSPRING_UNIVERSITY • 2025 • ECONOMICS • objective

A central bank uses the money multiplier formula to determine the money supply in an economy. The formula is given by M = (MB x R)/r, where MB is the monetary base, R is the reserve requirement, and r is the currency ratio. If the monetary base is ₦100 billion, the reserve requirement is 0.2, and the currency ratio is 0.5, what is the money supply?

Answer Options

A. ₦50 billion
B. ₦100 billion
Correct Answer C. ₦150 billion
D. ₦200 billion
Correct Answer
C
Correct Option:
₦150 billion

About This Question

This is Post Utme Wellspring University 2025 Economics Question 20. It is one of the objective questions from the 2025 Post Utme Wellspring University Economics examination.

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