Neco Model Questions Vol1 2025 Economics Question 9
Practice objective / multiple choice question 9 from the 2025 Neco Model Questions Vol1 Economics examination.
Initially the currency‑deposit ratio is 0.20 and the required reserve ratio is 0.10, giving a money supply of ₦800 billion. The Central Bank wants to increase the money supply by 20 % to ₦960 billion while keeping the total reserves unchanged. Assuming the currency‑deposit ratio remains the same, what must the new required reserve ratio be (expressed as a percentage)?
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About This Question
This is Neco Model Questions Vol1 2025 Economics Question 9. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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