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Deposit Multiplier (Credit Multiplier) equal:

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Question

Deposit Multiplier (Credit Multiplier) equal:

Options

  • Reserve Ratio (RR)

  • $$\frac{1}{RR}$$

  • $$\frac{1}{1 - RR}$$

  • None of these

MCQ
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Solution

$$\frac{1}{RR}$$

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Chapter 14: Banks: Commercial Bank and Central Bank - TEST YOURSELF QUESTIONS [Page 291]

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Frank Economics [English] Class 12 ISC
Chapter 14 Banks: Commercial Bank and Central Bank
TEST YOURSELF QUESTIONS | Q 6. | Page 291
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