Given a Cash Reserve Ratio (CRR) being 20%, the value of the money multiplier will be___. Option 1: 3 Option 2: 20 Option 3: 10 Option 4: 5

Answer: 5. Solution: The money multiplier is the reciprocal of the Cash Reserve Ratio: Money Multiplier = 1 / CRR = 1 / 0.20 = 5. So, with CRR = 20%, the money multiplier equals 5.

Macro

Money & Banking

Easy

Given a Cash Reserve Ratio (CRR) being 20%, the value of the money multiplier will be_______.

✅ Correct Option: 4

The money multiplier is the reciprocal of the Cash Reserve Ratio: $\text{Money Multiplier} = 1 / CRR = 1 / 0.20 = 5$ . So, with CRR = 20%, the money multiplier equals 5.

2026: 21 May Shift 1

Which of the following options correctly explains the functions of money?

(A) Medium of exchange

(B) Measure of account

(D) Quality measuring standard

Choose the correct answer from the options given below:

2025: 3 June Shift 1

Match List-I with List-II

List-I	List-II
(A) Bank Rate	(I) Securities are pledged in order to repurchase.
(B) Open Market Operations	(II) Minimum rate at which funds are provided for long term.
(C) Repo Rate	(III) Buying and selling of bonds issued by the government in open market.
(D) Reverse Repo Rate	(IV) Central bank borrows funds from commercial banks.

Choose the correct answer from the options given below:

2025: 30 May Shift 1

Which of th following system is followed by the Reserve Bank of India for issuing currency?

2025: 28 May Shift 1

The rate at which Reserve Bank of India gives loans to the commercial Bank for longer duration:

Repo Rate.
Reverese Repo Rate.
Bank Rate.
Saving Rate.

2022: 10 Aug Shift 2

Which of the following is not a function of the Central Bank ?

2023: 28 May Shift 2

When Cash Reserve Ratio is 20% then with the deposit of Rs 1000, Money creation will be Rs 5000, Money multiplier is :

Given a Cash Reserve Ratio (CRR) being 20%, the value of the money multiplier will be_______.

Solution

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