The money multiplier in an economy increases with which one of the following?
Question:
The money multiplier in an economy increases with which one of the following?
The money multiplier in an economy increases with which one of the following?
Options
Answer: Increase in the banking habit of the people
Explanation:
When people deposit more of their savings in banks, the deposit base expands, leading to a higher credit creation capacity of banks and thus an increased money multiplier.
Explanation:
When people deposit more of their savings in banks, the deposit base expands, leading to a higher credit creation capacity of banks and thus an increased money multiplier.
👉 Want AI explanation? Open in MCQ App
Recommended articles
- Medical Benefits Daily Mcq Practice Upsc — As a medical professional, I've witnessed firsthand how consistent learning patterns affect cognitive function. Daily MCQ practice isn't just about…
- Top 10 Daily Current Affairs Resources For Upsc Aspirants — Discover the best daily current affairs resources for UPSC 2026. Complete guide with The Hindu, PIB, Sansad TV, and 7 more proven sources. Expert…
- How To Cover Current Affairs For Upsc Prelims — Master UPSC Current Affairs with daily newspaper reading, Vision IAS monthly compilations, PT 365, and MCQ practice. Complete strategy guide for Prelims…