If the reserve ratio (R) is 0.10 and there is an increase in the reserves by ₹ 1,000, what will be the change in the money supply?
CA Foundation · Business Economics · PYQS · September 2024
If the reserve ratio (R) is 0.10 and there is an increase in the reserves by ₹ 1,000, what will be the change in the money supply?
Suggested Answer and Working Notes:
Correct Answer: Option (B)
B. ₹ 10,000
Topics: Theory of Demand and Supply, Money Market
Related Questions in this Topic
- If technological advancement occurs, supply curve will:
- The consumer surplus concept supports pricing strategy because:
- A key limitation of the Law of Diminishing MU is that it assumes utility is:
- If two goods X and Y have a positive cross elasticity, these goods are:
- At saturation point of TU curve, the slope of TU curve is _______