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Ratios and OMO

If the CRR is...

Question

If the CRR is 5%, what is the value of money multiplier?

A

25

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B

30

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C

20

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D

0

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Solution

The correct option is C
20

Money Multiplier $= \frac{1}{C R R}$

$= \frac{1}{\frac{5}{100}} = 20$

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