Neco Model Questions Vol1 2019 Economics Question 13
Practice objective / multiple choice question 13 from the 2019 Neco Model Questions Vol1 Economics examination.
The central bank requires a reserve ratio of \(10\%\) and the public holds currency equal to \(20\%\) of bank deposits. Initially total deposits are \(\N{₦}500\) billion. The central bank purchases \(\N{₦}50\) billion of government securities from the public. Assuming the entire amount becomes excess reserves, calculate the new total money supply after the operation.
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About This Question
This is Neco Model Questions Vol1 2019 Economics Question 13. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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