12th Class Economics Money And Banking Question Bank MCQs - Money and Banking

  • question_answer
    At a given point in time, money multiplier is equal to 10. What will be the value of legal reserve ratio?

    A) 10%

    B) 15%

    C) 20%

    D) 25%

    Correct Answer: A

    Solution :

    Money Multiplier = (1/LRR)
    10 = 1 / LRR
    LRR = 1/10 = 0.10 or 10 %


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