If Cash Reserve Ratio is 20%, what will be the value of money multiplier ? Option 1: 5 Option 2: 4 Option 3: 20 Option 4: 0.2

The answer is '5'. View full solution:

CUET Economics - If Cash Reserve Ratio is 20%, what will be the value of money multiplier ? | PYQs + Solutions

CUET Economics

Macro

Easy

0.2

✅ Correct Option: 1

Related questions:

30 May Shift 1

Arrange the following steps involved in the process of credit creation by Commercial Banks.

(A) The commercial bank lends the excess reserves to the borrowers.

(B) The borrowers deposit the loaned money in the bank.

(D) The initial deposit is made in the commercial bank.

Choose the correct answer from the options given below:

30 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Secondary Deposits	(i) Initial deposits with commercial banks
(B) Primary Deposits	(ii) The ratio of money held by the public in currency to that held at deposits in commercial banks.
(C) Currency Deposit ratio	(iii) No intrinsic value
(D) Fiat money	(iv) Demand deposits which come back to Commercial bank through lending process.

Choose the correct answer from the options given below:

CUET Economics 2023 Slot 3

The ratio of money held by the public in currency to that held as deposits in commercial banks is called .