Waec Model Questions Vol1 2023 Economics Question 29
Practice objective / multiple choice question 29 from the 2023 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) and banks keep required reserves equal to 10 % of deposits (reserve‑deposit ratio r = 0.10). The central bank injects an excess reserve of ₦200 million into the banking system. Assuming no other changes, what is the total increase in the money supply (M1) resulting from this injection? Express your answer in millions of Naira.
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About This Question
This is Waec Model Questions Vol1 2023 Economics Question 29. It is one of the objective questions from the 2023 Waec Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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