Waec Model Questions Vol1 2018 Economics Question 39
Practice objective / multiple choice question 39 from the 2018 Waec Model Questions Vol1 Economics examination.
In an economy, the public holds currency equal to 30 % of bank deposits (currency‑deposit ratio c = 0.30). Commercial banks are required to keep 10 % of deposits as reserves (required reserve ratio r = 0.10). If the central bank injects an excess reserve of ₦200 million, calculate the total increase in the money supply.
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About This Question
This is Waec Model Questions Vol1 2018 Economics Question 39. It is one of the objective questions from the 2018 Waec Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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