Neco 2024 Economics Question 16
Practice objective / multiple choice question 16 from the 2024 Neco Economics examination.
The central bank requires banks to hold a required reserve ratio of \(8\%\) and banks keep an excess reserve of \(4\%\) on their deposits. Households hold \(6\%\) of their deposits as cash. The effective reserve ratio is therefore the sum of required and excess reserves. If the central bank wishes to increase the money supply by ₦250 million, how many million naira of government securities must it purchase in an open‑market operation? Express your answer as a number of millions (to the nearest whole number).
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About This Question
This is Neco 2024 Economics Question 16. It is one of the objective questions from the 2024 Neco Economics examination.
Difficulty level: Medium .
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