Gce Model Questions Vol1 2023 Economics Question 31
Practice objective / multiple choice question 31 from the 2023 Gce Model Questions Vol1 Economics examination.
The central bank purchases government securities worth \(200\) million Naira, injecting this amount into the banking system. Banks are required to hold a reserve ratio of \(10\%\) and, in addition, keep excess reserves equal to \(20\%\) of the required reserves. Assuming all other conditions remain unchanged, calculate the total change in the money supply resulting from this open‑market operation.
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About This Question
This is Gce Model Questions Vol1 2023 Economics Question 31. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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