Statement 1: Money multiplier is directly related to legal reserve ratio.

Statement 2: Through money multiplier, commercial banks create credit, based upon the reserve ratio and initial deposits.


(a) Both the Statements are true

(b) Both the Statements are false

(c) Statement 1 is true and Statement 2 is false

(d) Statement 2 is true and Statement 1 is false

Anurag Pathak Changed status to publish January 6, 2024
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