Neco 2025 Economics Question 8
Practice objective / multiple choice question 8 from the 2025 Neco Economics examination.
In an economy the currency‑to‑deposit ratio is \(c = 0.25\) and the required reserve ratio is \(r = 0.10\). The central bank conducts an open‑market purchase that injects ₦200 million of reserves into the banking system. Assuming banks lend out all excess reserves, calculate the total increase in the money supply. Express your answer in millions of naira, rounded to one decimal place.
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About This Question
This is Neco 2025 Economics Question 8. It is one of the objective questions from the 2025 Neco Economics examination.
Difficulty level: Medium .
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