Gce Model Questions Vol1 2021 Economics Question 7
Practice objective / multiple choice question 7 from the 2021 Gce Model Questions Vol1 Economics examination.
The central bank requires banks to hold \(10\%\) of deposits as required reserves. The public holds cash equal to \(25\%\) of total deposits (currency‑deposit ratio \(c = 0.25\)). If the total amount of reserves held by banks is £500 million, calculate the total money supply \(M\) in the economy.
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About This Question
This is Gce Model Questions Vol1 2021 Economics Question 7. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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