alleryMatch each money multiplier and credit creation concept with its formula:
A1-A, 2-B, 3-C
B1-B, 2-A, 3-C
C1-C, 2-B, 3-A
D1-A, 2-C, 3-B
Answer & Solution
Correct answer: A. 1-A, 2-B, 3-C
Multiplier k = 1/LRR. Credit = Initial deposit × k. High powered money is currency + reserves.
Keep practising Money and Banking
Browse all Money and Banking questions for CBSE Class 12 (Arts), or explore more Economics topics.
Related questions
Match each function of money with its primary economic duty:Match each central banking monetary tool with its inflation control impact:Match each monetary reserve ratio with its central banking definition:How many major commercial banks did India nationalise in 1969?The Reserve Bank of India was nationalised in which year?Interbank deposits are excluded from money supply because only deposits of theWhich measures are called narrow money?M3 equals M1 plus