Waec Model Questions Vol1 2020 Economics Question 41
Practice objective / multiple choice question 41 from the 2020 Waec Model Questions Vol1 Economics examination.
The Central Bank injects ₦120 million of new reserves into the banking system through an open‑market purchase. The currency‑to‑deposit ratio (c) is 0.4 and the statutory reserve requirement is 10%. Banks decide to hold 20% of the injected reserves as excess reserves. What is the total increase in the money supply (in millions of naira) resulting from this operation?
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About This Question
This is Waec Model Questions Vol1 2020 Economics Question 41. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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