Waec Model Questions Vol1 2018 Economics Question 28
Practice objective / multiple choice question 28 from the 2018 Waec Model Questions Vol1 Economics examination.
The central bank sets a required reserve ratio of 10 % and the public holds currency equal to 20 % of bank deposits (currency‑deposit ratio = 0.20). Initially, the public deposits ₦500 million in cash into banks. Afterwards, the central bank purchases government securities worth ₦200 million from the public. Assuming no other changes, what is the total increase in the money supply (in millions of Naira) after the process stabilises?
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About This Question
This is Waec Model Questions Vol1 2018 Economics Question 28. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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