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    Question

      Suppose the reserve ratio is 0.10, Currency in

    Circulation is Rs.200, Deposits are Rs.800 and Excess Reserves Rs.100 , then calculate the money multiplier
    A 2.77 Correct Answer Incorrect Answer
    B 1.25 Correct Answer Incorrect Answer
    C 1.54 Correct Answer Incorrect Answer
    D 2.63 Correct Answer Incorrect Answer

    Solution

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