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प्रश्न
What is money multiplier?
एका वाक्यात उत्तर
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उत्तर
Money Multiplier is the multiple by which total deposit increases due to initial deposits (primary deposits).
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संबंधित प्रश्न
Explain the credit creation role of commercial banks with the help of a numerical example.
Banks are able to create credit many times more than initial deposits through ______.
Explain the role of legal reserve ratio and Bank rate in correcting inflationary gap in an economy.
If legal reserve ratio is 20%, the value of money multiplier would be ______.
Match the following:
| Column I | Column II | ||
| A. | Primary deposits | (i) | Payable on demand |
| B. | Derivative deposits | (ii) | Deposits for a fixed period of time |
| C. | Demand deposits | (iii) | Cash deposits of people |
| D. | Term deposits | (iv) | Deposits created by banks (or loan deposits) |
Match the following:
| Column I | Column II | ||
| A. | Formula of Money Multiplier | (i) | Inverse |
| B. | Money multiplier = 4 | (ii) | Money multiplier = 10 |
| C. | Relationship between LRR and money multiplier | (iii) | LRR = 0.25 |
| D. | LRR = 0.1 | (iv) | `1/"LRR"` |
What are secondary (derivative) deposits?
What is the unique function of commercial banks in the money supply?
A T-account shows that a ₹10,000 cash deposit increases ______.
Which factor most directly limits credit creation?
