If the reserve ratio is 10%, the simple deposit/money multiplier is: MCQ with Answer and Explanation

Question

Share Report Error

If the reserve ratio is 10%, the simple deposit/money multiplier is:

A. 10

B. 5

C. 20

D. 100

Answer: Option A

Solution (By JKSSB Mock Tests)

Money multiplier = 1/reserve ratio = 1/0.10 = 10.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

The concept of 'Purchasing Power Parity' is used primarily for:

A. Determining domestic interest rates only

B. Comparing the real value of currencies and living standards across countries

C. Measuring unemployment rates

D. Calculating fiscal deficit

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
PPP exchange rates equalise the purchasing power of different currencies by eliminating differences in price levels, allowing better comparison of real income and living standards.

This question belongs to: Economy GK Economy Set 1

Question #2

The concept of 'Inclusive Growth' emphasises:

A. Only growth in the formal sector

B. Growth that is broad-based, creates productive employment and reduces poverty and inequality

C. Only growth in urban areas

D. Only the maximisation of GDP growth regardless of distribution

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
Inclusive growth is economic growth that generates productive employment opportunities for a large part of the labour force and ensures that the benefits of growth are widely shared.

This question belongs to: Economy GK Economy Set 1

Question #3

In the context of digital finance, 'Central Bank Digital Currency' (CBDC) refers to:

A. Only privately issued cryptocurrencies

B. A digital form of central-bank money that is a direct liability of the central bank

C. Only physical cash

D. Only commercial-bank deposits

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option B

Explanation:
A central-bank digital currency is a digital payment instrument denominated in the national unit of account that is a direct liability of the central bank, distinct from both physical cash and commercial-bank deposits.

This question belongs to: Economy GK Economy Set 1

Explore All Economy Set 1 MCQs