Waec Model Questions Vol1 2017 Economics Question 28
Practice objective / multiple choice question 28 from the 2017 Waec Model Questions Vol1 Economics examination.
A country's balance of payments shows a current‑account deficit of $5 billion, a capital‑account surplus of $3 billion and official foreign‑exchange reserves of $10 billion. To finance the deficit the central bank sells $2 billion of reserves, and each dollar sold reduces the monetary base by $1. If the money multiplier is 5, what is the change in the money supply resulting from this intervention?
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About This Question
This is Waec Model Questions Vol1 2017 Economics Question 28. It is one of the objective questions from the 2017 Waec Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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