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Arithmetic Mean

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Question

What is the value of money multiplier when initial deposits are $R s . 500$ crores and LRR is $10$ ?

A

0.1

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B

0.2

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C

10

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D

20

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Solution

The correct option is C $0.1$
$M O N E Y M U L T I P L I E R = \frac{1}{L R R}$
$M O N E Y M U L T I P L I E R = \frac{1}{10} = 0.1$

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