Question 49
MediumOriginal questionHigh-powered money is ₹400 crore and the money multiplier is 4. Money supply is
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
Money supply = money multiplier × high-powered money = 4 × 400 = ₹1,600 crore.
- Concept
- Money supply from H
- Typical timeTypical
- 70 s
- Your timeYours
- —
Practise this chapter →
Ten questions from Money Creation by Banks, at your own pace.