Neco Model Questions Vol1 2024 Economics Question 34
Practice objective / multiple choice question 34 from the 2024 Neco Model Questions Vol1 Economics examination.
The required reserve ratio set by the central bank is 10 %. Commercial banks hold excess reserves equal to 2 % of their deposits. The public keeps cash equal to 20 % of the total money supply. If the central bank purchases government securities worth ₦500 million from banks, what is the total increase in the money supply (in millions of naira, rounded to the nearest million)?
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About This Question
This is Neco Model Questions Vol1 2024 Economics Question 34. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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