Question

find the value of money multiplier if CRR is 10% and SR is 15 %​

Answer 1

Answer:

If the reserve requirement is 10%, then the money supply reserve multiplier is 10 and the money supply should be 10 times reserves. When a reserve requirement is 10%, this also means that a bank can lend 90% of its deposits.

Answer 2

Answer:

LRR = CRR + SLR

LRR= 10+15

LRR=25%

however,

money multiplier =1/LRR =1/0.25=25