In the context of monetary economics, the 'Money Multiplier' is:
A. The ratio of exports to imports
B. The ratio of broad money to reserve money
C. The ratio of fiscal deficit to GDP
D. The ratio of investment to saving
Answer: Option B
Solution (By JKSSB Mock Tests)
The money multiplier is the ratio of the stock of broad money (such as M3) to the stock of reserve money, reflecting the extent of credit creation by the banking system.
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