Gce Model Questions Vol1 2021 Economics Question 26
Practice objective / multiple choice question 26 from the 2021 Gce Model Questions Vol1 Economics examination.
The central bank requires a reserve ratio of 10 % and banks hold an excess‑reserve ratio of 2 % of deposits. The bank purchases government securities worth £50 million, adding that amount to bank reserves. If the initial total deposits are £200 million, what is the eventual increase in the money supply (in £ million, rounded to one decimal place)?
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About This Question
This is Gce Model Questions Vol1 2021 Economics Question 26. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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