Neco Model Questions Vol1 2020 Economics Question 6

Practice objective / multiple choice question 6 from the 2020 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2020 Economics Objective / Multiple Choice Medium Difficulty

Question 6 NECO_MODEL_QUESTIONS_VOL1 • 2020 • ECONOMICS • objective

The Central Bank purchases \(200\) million naira of government securities. If the required reserve ratio is \(0.10\) and the public holds a currency‑deposit ratio of \(0.25\), calculate the total increase in the money supply.

Answer Options

Correct Answer A. ≈₦714.3 million (approx)

B. ≈₦600.0 million (approx)

C. ≈₦800.0 million (approx)

D. ≈₦650.0 million (approx)

Correct Answer

Correct Option:

≈₦714.3 million (approx)

About This Question

This is Neco Model Questions Vol1 2020 Economics Question 6. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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