Neco 2024 Economics Question 6
Practice objective / multiple choice question 6 from the 2024 Neco Economics examination.
The central bank requires banks to hold a required reserve ratio of 10% and the public holds currency equal to 25% of bank deposits. Initially total bank deposits are ₦500 million. (a) Calculate the total money supply under these conditions. (b) The central bank later changes the required reserve ratio to 12% and the currency‑deposit ratio to 20% while deposits remain unchanged. Calculate the new money supply and the percentage change from the initial level.
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About This Question
This is Neco 2024 Economics Question 6. It is one of the objective questions from the 2024 Neco Economics examination.
Difficulty level: Medium .
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