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What is the relation between LRR and money multiplier?

Money Multiplier = 1/LRR is the relation between LRR and money multiplier. LRR is the legal reserve ratio. You can read about the Money Supply in Economy – Types of Money, Monetary Aggregates, Money Supply Control in the given link.

Further readings:

  1. Monetary Policy – Objectives, Roles and Instruments (UPSC Indian Economy)
  2. Topic-Wise GS 3 Questions for UPSC Mains

Related Links

Economy Questions in UPSC Prelims [2013-2020]

Forex Reserves – Importance, Advantages

Black Money: Definition, Sources & Measures to Curb Black Money

Monetary Policy Committee (MPC)- UPSC Notes

Fiscal Policy in India – Objectives, Components

Monetary System – Types of Monetary System (Commodity, Commodity-Based, Fiat Money)

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