Waec Model Questions Vol1 2021 Economics Question 34
Practice objective / multiple choice question 34 from the 2021 Waec Model Questions Vol1 Economics examination.
In an economy the public holds currency equal to 30 % of bank deposits (currency‑deposit ratio \(c = 0.30\)). Banks keep required reserves equal to 15 % of deposits (reserve‑deposit ratio \(r = 0.15\)). The central bank conducts an open‑market purchase of government securities worth ₦5,000 million, injecting that amount into the banking system. Using the money multiplier formula, calculate the resulting increase in the money supply (in millions of Naira, rounded to the nearest million).
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About This Question
This is Waec Model Questions Vol1 2021 Economics Question 34. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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