WAEC Economics 2024 Objective — Question 39
Question 39 of 50 from the West African Examinations Council (WAEC) Economics 2024 Objective paper, with the correct answer and a full explanation.
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39. Money supply will increase when the Central Bank
- A. buys securities from the public.Correct
- B. increases the reserve requirements.
- C. increases the bank rate.
- D. sells securities to the public.
Explanation
When the Central Bank buys securities, it pays people with cash, and this results in an increase in money supply in the economy.
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