Question

3. The money multiplier in an economy
increases with which one of the following?
a.
Increase in the cash reserve ratio
b. Increase in the banking habit of the
population
c. Increase in the statutory liquidity ratio
d. Increase in the population of the country.

Answer 1

Answer:

a.Increase in the cash reserve ratio

Answer 2

Answer:

Explanation:

The correct answer is option 2, i.e Increase in the banking habit of the population.