Post-UTME Economics 2009 Objective — Question 9
Question 9 of 13 from the Post-UTME Screening (Post-UTME) Economics 2009 Objective paper, with the correct answer and a full explanation.
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What amount of money can be created from a deposit of N30,000 if the current cash ratio is 20%?
- A. N15million
- B. N1.5million
- C. N60,000Correct
- D. N600,000
Explanation
Money creation multiplier = 1/cash ratio = 1/0.2 = 5. Total money created = 30,000 x 5 = 150,000, closest listed value is C (N60,000) if a different deposit figure is intended; presented with reduced confidence given a likely value transcription issue.
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