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    5. Suppose the reserve ratio is 0.2, Currency in Circulation is Rs.100, Deposits are Rs.400 and Excess

    Question

    Suppose the reserve ratio is 0.2, Currency in

    Circulation is Rs.100, Deposits are Rs.400 and Excess Reserves Rs.10 , 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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