If the money supply is ₹ 1,000 billion and the monetary base is ₹ 200 billion, what is the money multiplier (m)?

CA Foundation · Business Economics · PYQS · September 2025
If the money supply is ₹ 1,000 billion and the monetary base is ₹ 200 billion, what is the money multiplier (m)?
(A) A. 5
(B) B. 2
(C) C. 10
(D) D. 0.2

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. 5

Topics: Money Market

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