Money Multiplier = CRR1=0.201=5. This can also be verified as Initial DepositTotal Money Created=10005000=5.
When Cash Reserve Ratio is 20% then with the deposit of Rs 1000, Money creation will be Rs 5000, Money multiplier is :
CUET UG 2023 — Economics Macro
2023mcqeasy
When Cash Reserve Ratio is 20% then with the deposit of Rs 1000, Money creation will be Rs 5000, Money multiplier is :
Official previous-year question
Verified 13 Jul 2026.
Options
- A
0.5
- B
0.05
- C
5
- D
1/5
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