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Q14 of 25 Page 1

If the legal reserve ratio is 20%, the value of money multiplier would be __________ . (Choose the correct alternative)

Money multiplier = 1/ Legal reserve ratio


Money multiplier = 1/20%


= 1/20/100


=100/20


= 5

More from this chapter

All 25 →
12

(a) What is the slope of an Indifference curve?

(b) A rational consumer is consuming only two goods, Good X and Good Y. The prices of the goods are < 20 and < 10 respectively. Her total money income is < 200. Answer the following questions, using the given information :


(i) State her Budget line equation.


(ii) State the slope of the Budget line of the consumer.


(iii) If she decides to spend her entire income on Good Y, how many units of Good Y can she buy?


OR


Discuss the law of equi-marginal utility.


13

Which of the following is a capital receipt in the Government Budget?

15

If in an economy, the Estimated Receipts of the government during ayear are lesser than the Estimated Expenditure, the budget would be called _________ budget. (Fill up the blank)

16

What are the primary deposits?

Questions · 25
Set-I
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