If the reserve ratio is 20%, what is the money multiplier? Option 1: 5 Option 2: 10 Option 3: 20 Option 4: 0.8

The answer is '5'. View full solution:

CUET Economics - If the reserve ratio is 20%, what is the money multiplier? | PYQs + Solutions

CUET Economics 2025 29 May Shift 1

Macro

Easy

0.8

✅ Correct Option: 1

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(B) M₁	(II) Reserves + Loans
(C) Assets	(III) 1/ Cash Reserve Ratio
(D) Money Multiplier.	(IV) Assets – Liabilities

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CUET Economics 2025 29 May Shift 1 PYQs

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