If legal reserve ratio is 20%, the value of money multiplier would be ____.
If legal reserve ratio is 20%, the value of money multiplier would be ____.
(a) 2
(b) 3
(c) 5
(d) 4
Anurag Pathak Changed status to publish January 3, 2024
Ans – (c)
Explanation:-
If LRR = 20%
Money Multiplier = 1/LRR
Money Multiplier = 1/20%
Money Multiplier = 100/20
Money Multiplier = 5 times
Anurag Pathak Changed status to publish January 3, 2024
