Gce Model Questions Vol1 2018 Economics Question 41

Practice objective / multiple choice question 41 from the 2018 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2018 Economics Objective / Multiple Choice Medium Difficulty
Question 41 GCE_MODEL_QUESTIONS_VOL1 • 2018 • ECONOMICS • objective

The central bank raises the required reserve ratio from 10% to 12% while the currency‑to‑deposit ratio remains at 0.20. If banks have excess reserves of ₦200 million, by how much will the total money supply change?

Answer Options

A. -40 million
B. -60 million
Correct Answer C. -50 million
D. -55 million
Correct Answer
C
Correct Option:
-50 million

About This Question

This is Gce Model Questions Vol1 2018 Economics Question 41. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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