Neco Model Questions Vol1 2022 Economics Question 9
Practice objective / multiple choice question 9 from the 2022 Neco Model Questions Vol1 Economics examination.
The central bank purchases government securities worth ₦500 million, injecting this amount into the banking system. The required reserve ratio is 10 % and the public holds currency equal to 0.25 times the amount of deposits (currency‑deposit ratio \(c = 0.25\)). Using the money multiplier, determine the total increase in the money supply resulting from this open‑market operation. Express your answer in millions of naira, rounded to the nearest million.
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About This Question
This is Neco Model Questions Vol1 2022 Economics Question 9. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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