Question

Read the following statements carefully and choose the correct alternatives given below:

Statement 1 - The value of the money multiplier is determined by the reserve ratio prevailing in the monetary system.

Statement 2 - The process of credit creation directly relates to the value of the reserve ratio.

पर्याय

• Both the statements are true.

• Both the statements are false.

• Statement 1 is true and Statement 2 is false.

• Statement 2 is true and Statement 1 is false.

Answer 1

Statement 1 is true and Statement 2 is false.