Neco 2023 Economics Question 44

Practice objective / multiple choice question 44 from the 2023 Neco Economics examination.

Neco 2023 Economics Objective / Multiple Choice Medium Difficulty
Question 44 NECO • 2023 • ECONOMICS • objective

The Central Bank purchases government securities worth ₦200 million, injecting the amount into the banking system. The required reserve ratio is 10 % and the public holds a currency‑to‑deposit ratio of 0.25. Assuming no excess reserves, compute the resulting change in the total money supply.

Answer Options

A. ₦2,000 million (approx.)
B. ₦800.0 million (approx.)
Correct Answer C. ₦714.3 million (approx.)
D. ₦571.4 million (approx.)
Correct Answer
C
Correct Option:
₦714.3 million (approx.)

About This Question

This is Neco 2023 Economics Question 44. It is one of the objective questions from the 2023 Neco Economics examination.

Difficulty level: Medium .

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