In the context of monetary economics, the 'Money Multiplier' is: MCQ with Answer and Explanation

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.

Discuss this Question (0)

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

Practice More Economy Set 1 Questions

Question #1
Real GDP differs from nominal GDP because real GDP:
A. includes depreciation
B. includes indirect taxes
C. is measured at base year prices
D. is measured at current year prices

Correct Answer: Option C


Explanation:
Real GDP is valued at constant base year prices to remove the effect of inflation.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'National Education Policy 2020' aims to increase public investment in education to what percentage of GDP?
A. 6%
B. 3%
C. 8%
D. 10%

Correct Answer: Option A


Explanation:
NEP 2020 aims to increase public investment in education to 6% of GDP.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Blue Revolution' in India is associated with which commodity?
A. Fish
B. Milk
C. Pulses
D. Oilseeds

Correct Answer: Option A


Explanation:
The Blue Revolution is associated with fisheries development.

This question belongs to: Economy GK Economy Set 1