Money Supply is directly proportional to:

CA Foundation · Business Economics · MTP · January 2025
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 (B)

B. Monetary base (H)

Topics: Business Cycles

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