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    5.   Suppose the reserve ratio is 0.10, Currency in Circulation is Rs.200, Deposits are Rs.800 and Exc

    Question

      Suppose the reserve ratio is 0.10, Currency in

    Circulation is Rs.200, Deposits are Rs.800 and Excess Reserves Rs.100 , then calculate the money multiplier
    A 2.77 Correct Answer Incorrect Answer
    B 1.25 Correct Answer Incorrect Answer
    C 1.54 Correct Answer Incorrect Answer
    D 2.63 Correct Answer Incorrect Answer

    Solution

    Practice Next
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