GyanGramQuestion
The money multiplier in an economy increases with which one of the following?
PRELIMS 2021 · INDIAN ECONOMY
The money multiplier in an economy increases with which one of the following?
Attempt this previous-year question. The correct option stays hidden until you choose.
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• Correct Answer: C
• Money multiplier rises when more cash enters the banking system as deposits, expanding credit creation.
• Higher CRR/SLR reduces lendable resources and lowers the multiplier.
• Population growth alone does not affect banking behavior.
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