New Enroll for RBI, PFRDA & NABARD Intro Class! April 18 at 9:15 PM

    Question

    ____ in reserve requirements ____ the money supply since

    it causes the money multiplier to ____.
    A Decrease; increases; rise. Correct Answer Incorrect Answer
    B Decrease; decreases; fall Correct Answer Incorrect Answer
    C Rise; increase; rise. Correct Answer Incorrect Answer
    D Rise; decrease; rise Correct Answer Incorrect Answer

    Solution

    Decrease in reserve requirements increase the money supply since it causes the money multiplier to rise.

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