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Match List-I with List-II

List-IList-II
(A) Net Worth(I) Currency + Deposits
(B) M₁(II) Reserves + Loans
(C) Assets(III) 1/ Cash Reserve Ratio
(D) Money Multiplier.(IV) Assets – Liabilities

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 1

Option 1: (A) - (IV), (B) - (I), (C) - (II), (D) - (III) -> Let's verify each match: (A) Net Worth correctly matches with (IV) Assets – Liabilities as net worth represents the ownership equity. (B) M₁ correctly matches with (I) Currency + Deposits as M₁ is the narrow money supply measure including currency with public and demand deposits. (C) Assets correctly matches with (II) Reserves + Loans as these are the primary components of a bank's asset side. (D) Money Multiplier correctly matches with (III) 1/Cash Reserve Ratio as the simple money multiplier is calculated as the reciprocal of CRR. -> correct

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