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Question

What is the other name for `Money Multiplier'?

A
Credit Multiplier
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B
Deposit Multiplier
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C
Cash Reserve Ratio
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D
None of these
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Solution

The correct option is D Deposit Multiplier
Deposit multiplier and money multiplier are very closely related concepts, the deposit multiplier provides the basis for money multiplier, but the money multiplier value is less due to excess reserves.

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