If the CRR is 5%, what is the value of money multiplier? Options: A . &nbsp25 B . &nbsp30 C . &nbsp20 D . &nbsp0

Answer: Option C : C Money Multiplier = 1 C R R = 1 5 100 = 20

If the CRR is 5%, what is the value of money multiplier?

Question

If the CRR is 5%, what is the value of money multiplier?

Options:

A . 25

B . 30

C . 20

D . 0

Answer: Option C
:
C
Money Multiplier

= \frac{1}{C R R}

= \frac{1}{\frac{5}{100}} = 20

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