Gce Model Questions Vol1 2024 Economics Question 28

Practice objective / multiple choice question 28 from the 2024 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2024 Economics Objective / Multiple Choice Medium Difficulty
Question 28 GCE_MODEL_QUESTIONS_VOL1 • 2024 • ECONOMICS • objective

The central bank's monetary base is ₦500 billion. The required reserve ratio is 10\% and the currency‑to‑deposit ratio is 0.3. The bank wishes to increase the money supply by ₦200 billion using open‑market purchases of government securities. How many billions of securities must it buy?

Answer Options

A. ≈ 82 billion
B. ≈ 70 billion
C. ≈ 55 billion
Correct Answer D. ≈ 61.5 billion
Correct Answer
D
Correct Option:
≈ 61.5 billion

About This Question

This is Gce Model Questions Vol1 2024 Economics Question 28. It is one of the objective questions from the 2024 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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