If money supply is 5,00,000 and high-powered money is 2,00,000, what is the valu

Question

If money supply is 5,00,000 and high-powered money is 2,00,000, what is the value of the multiplier?

Options:

A . 0.4

B . 2.5

C . 3

D . 7

Answer: Option B
:
B
The multiplier is

\frac{M}{H} = \frac{5, 00, 000}{2, 00, 000} = 2.5

Was this answer helpful ?

Next Question

More Questions on This Topic :

Question 1. The act of holding money as insurance against cases of emergency gives rise to ______________ demand.....

Question 2. The percentage of demand deposits which the commercial banks are legally required to maintain as their liquid assets is ....legally required to maintain as their liquid assets is called:

Question 3. Savings are:....

Question 4. The narrowest section of money supply is:....

Question 5. Credit cards issued by the banks:....

Question 6. In India, operative cash reserves are known as:....

Question 7. If the size of income of a family is increasing, the precautionary demand of money will:....

Question 8. Rate of interest on loans - Rate of interest on deposits is called ___ . ....

Question 9. Derivative deposits are:....

Question 10. A commercial bank is a bank that:....

Chapter 1 - GLOBAL STEEL SCENARIO & INDIAN STEEL INDUSTRY Part 1 : (13-04-2024) INDUSTRY AND COMPANY AWARENESS (ICA)

Direction Sense Test Part 1 Reasoning (Hindi)

Chapter 1 - RMHP / OHP / OB & BP Part 1 : (14-02-2024) GPOE

Cube & Cuboid Part 1 Reasoning (Hindi)

Data Interpretation (DI) Basic Concept Reasoning (Hindi)

Counting Figures Part 1 Counting Of Straight Lines Reasoning (Hindi)

Sail E0 free webinar Webinars

Real Numbers Part 7 Class 10 Maths

Real Numbers Part 1 Class 10 Maths

Polynomials Part 1 Class 10 Maths

DSP Combined 1 Free Revision Test SAIL JO E-0

GPOE / GPA Combined 1 Free Revision Test SAIL JO E-0

BSP Plant Specific Review Test SAIL JO E-0

BSL Combined 1 Free Revision Test SAIL JO E-0

GFM Combined 1 Free Revision Test SAIL JO E-0