Neco 2022 Economics Question 19
Practice objective / multiple choice question 19 from the 2022 Neco Economics examination.
The central bank sets the required reserve ratio at 10% and the public holds currency equal to 30% of bank deposits. Initially, total bank deposits are \(\text{₦}500\) million. The central bank then purchases government securities worth \(\text{₦}50\) million, paying the sellers by crediting their bank accounts. What is the new total money supply (in million Naira) after this open‑market operation?
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About This Question
This is Neco 2022 Economics Question 19. It is one of the objective questions from the 2022 Neco Economics examination.
Difficulty level: Medium .
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