If the money supply increases by ₹ 750 crores, when there is an injection of ₹ 250 crores, through the open market operations by the central bank of…

CA Foundation · Business Economics · PYQS · May 2026
If the money supply increases by ₹ 750 crores, when there is an injection of ₹ 250 crores, through the open market operations by the central bank of the country. Calculate the money multiplier.
(A) A. 2.00
(B) B. 0.33
(C) C. 3.00
(D) D. 0.50

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. 3.00

Topics: Money Market

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic