10:[["$","title","0",{"children":"CUET Economics - Given a cash reserve ratio of 50 per cent and reserves of Rs 100, what is the money multiplier? | PYQs + Solutions | AfterBoards"}],["$","meta","1",{"name":"description","content":"undefined Option 1: 5 -> Incorrect calculation of the money multiplier. Option 2: 2 -> Correct application of the money multiplier formula (1/CRR). Option 3: 20 -> Incorrectly derived value. Option 4: 200 -> This would be the result if reserves were multiplied by an incorrect multiplier.

Hence, Option 2: 2 -> The money multiplier is calculated as 1 divided by the cash reserve ratio. With a CRR of 50% (or 0.50), the money multiplier = 1/0.50 = 2. This means that for every rupee of reserves, the banking system can create 2 rupees of money supply. The reserves amount (Rs 100) is not needed for calculating the multiplier itself. -> correct"}],["$","link","2",{"rel":"manifest","href":"https://www.afterboards.in/manifest.json","crossOrigin":"$undefined"}],["$","meta","3",{"name":"keywords","content":"CUETECO,ECO,Macro,Money & Banking"}],["$","meta","4",{"name":"robots","content":"index, follow"}],["$","meta","5",{"name":"category","content":"education"}],["$","meta","6",{"name":"google-site-verification","content":"google"}],["$","meta","7",{"property":"og:title","content":"CUET Economics - Given a cash reserve ratio of 50 per cent and reserves of Rs 100, what is the money multiplier? | PYQs + Solutions"}],["$","meta","8",{"property":"og:description","content":"undefined Option 1: 5 -> Incorrect calculation of the money multiplier. Option 2: 2 -> Correct application of the money multiplier formula (1/CRR). Option 3: 20 -> Incorrectly derived value. Option 4: 200 -> This would be the result if reserves were multiplied by an incorrect multiplier.

Hence, Option 2: 2 -> The money multiplier is calculated as 1 divided by the cash reserve ratio. With a CRR of 50% (or 0.50), the money multiplier = 1/0.50 = 2. This means that for every rupee of reserves, the banking system can create 2 rupees of money supply. The reserves amount (Rs 100) is not needed for calculating the multiplier itself. -> correct"}],["$","meta","9",{"property":"og:url","content":"https://www.afterboards.in/past-year-questions/cuet-economics/2025/slot-12/2"}],["$","meta","10",{"property":"og:site_name","content":"AfterBoards | CUET Economics Preparation"}],["$","meta","11",{"property":"og:image","content":"https://www.afterboards.in/pyp/AfterBoards%20CUET%20Past%20Year%20Papers%20with%20Solutions.webp"}],["$","meta","12",{"property":"og:type","content":"website"}],["$","meta","13",{"name":"twitter:card","content":"summary_large_image"}],["$","meta","14",{"name":"twitter:site","content":"afterboards.in"}],["$","meta","15",{"name":"twitter:title","content":"CUET Economics - Given a cash reserve ratio of 50 per cent and reserves of Rs 100, what is the money multiplier? | PYQs + Solutions"}],["$","meta","16",{"name":"twitter:description","content":"undefined Option 1: 5 -> Incorrect calculation of the money multiplier. Option 2: 2 -> Correct application of the money multiplier formula (1/CRR). Option 3: 20 -> Incorrectly derived value. Option 4: 200 -> This would be the result if reserves were multiplied by an incorrect multiplier.

CUET Economics 2025 28 May Shift 2 PYQs

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