Money Supply is directly proportional to:

CA Foundation · Business Economics · MTP · May 2026
Money Supply is directly proportional to:
(A) A. Cash reserve ratio (r)
(B) B. Monetary base (H)
(C) C. Currency deposit ratio (k)
(D) D. Money Multiplier (m)

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. Money Multiplier (m)

Topics: Money Market

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