Gce Model Questions Vol1 2025 Economics Question 19

Practice objective / multiple choice question 19 from the 2025 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2025 Economics Objective / Multiple Choice Medium Difficulty
Question 19 GCE_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • objective

In an economy the currency‑to‑deposit ratio is 0.20 and the required reserve ratio is 0.10. (a) Compute the money multiplier. (b) If the central bank purchases government securities worth £50 million, by how much does the total money supply change? Give the change in £ millions.

Answer Options

A. 250
B. 150
C. 100
Correct Answer D. 200
Correct Answer
D
Correct Option:
200

About This Question

This is Gce Model Questions Vol1 2025 Economics Question 19. It is one of the objective questions from the 2025 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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