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    Question

    Given CRR = 4 % and SLR = 16 % , the value of the money

    multiplier is:
    A 5 Correct Answer Incorrect Answer
    B 25 Correct Answer Incorrect Answer
    C 8.33 Correct Answer Incorrect Answer
    D 6.25 Correct Answer Incorrect Answer
    E 6.50 Correct Answer Incorrect Answer

    Solution

    Money Multiplier corresponds to 1 / LRR. LRR is equivalent to SLR plus CRR. Hence Money Multiplier denotes 1 /20 %. And after trying to solve it comes to 5 .

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