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SSC CGL 2022 PYQ — Question 35

SSC CGL - 05 Dec 2022 - Shift 3 • General Awareness • Q35

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Money multiplier can be expressed as ______.

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Correct answer: D

Explanation

The correct answer is option 4 i.e. 1/ Cash Reserve Ratio.

  • The increase in the money supply is the money multiplier. Money is either currency held by the public or bank deposits: M =C+D.
  • The monetary base is either held by the public as currency or held by the banks as reserves: B =C+R.     
  • Cash Reserve Ratio (CRR) is the percentage of a bank's total deposits that it needs to maintain as liquid cash