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Worksheetscredit/ money multiplier , reserve money ,Monetary aggregate
Total questions: 52
Worksheet time: 52mins
If Cash Reserve Ratio (CRR) is 10%, what will be the Credit Multiplier?
2
5
10
20
If CRR = 5%, then the Credit Multiplier = ?
10
15
20
25
When CRR = 20%, what will be the Money Multiplier?
4
5
6
10
If initial deposit = ₹1,000 and CRR = 10%, total money created = ?
₹2,000
₹5,000
₹10,000
₹1,100
Credit Multiplier is the reciprocal of:
Repo Rate
CRR
SLR
Reverse Repo
If banks keep 25% as reserve, then Credit Multiplier = ?
2
3
4
5
Money Multiplier depends on:
CRR
SLR
Both A and B
None of these
Reserve Money is also known as:
Narrow Money
High-Powered Money
Broad Money
Fiduciary Money
M1 = ?
Currency + Demand deposits + Other deposits
Currency + Fixed deposits
Currency + Savings deposits
Currency only
M3 = ?
M1 + Time Deposits
M1 + Gold Reserves
M1 + Borrowings
None
M4 = ?
M3 + Post Office Deposits
M3 + Demand Deposits
M3 + Cash Reserves
None
Narrow Money refers to:
M1
M2
M3
M4
Which of the following is most liquid?
M1
M2
M3
M4
If CRR = 4%, the Money Multiplier = ?
10
20
25
None
Reserve Money = ?
Currency in Circulation + Bankers’ Deposits + Other Deposits with RBI
Only Currency with Public
Only Bank Reserves
None
If total Reserve Money = ₹5000 crore, and Money Multiplier = 4, total Money Supply = ?
₹1,250 crore
₹20,000 crore
₹12,500 crore
₹2,000 crore
Which of the following is not included in M1?
Demand Deposits
Time Deposits
Currency with Public
Other Deposits with RBI
If Money Supply = ₹50,000 and Reserve Money = ₹10,000, find Money Multiplier.
4
5
6
8
If Money Multiplier = 5 and Reserve Money = ₹2,000, then Money Supply = ?
₹10,000
₹12,000
₹8,000
₹2,500
Which is broader measure of money?
M1
M2
M3
M4
If CRR = 10%, SLR = 20%, find Money Multiplier.
2
3.33
4
5
If ₹500 is deposited and CRR = 10%, find total credit created.
₹1,000
₹2,000
₹5,000
₹10,000
If public prefers to hold 20% cash of deposits and CRR = 10%, find Multiplier.
4
5
3.33
2.5
If M1 = ₹5,000, Time Deposits = ₹2,000, then M3 = ?
₹5,000
₹6,000
₹7,000
₹8,000
If Reserve Ratio = 0.1 and Cash with Public = ₹100, total Money Supply = ?
₹1,000
₹900
₹1,100
₹1,200
If total reserve = ₹2,000 and deposit = ₹10,000, CRR = ?
5%
10%
15%
20%
If total reserve = ₹2,000 and deposit = ₹10,000, CRR = ?
5%
10%
15%
20%
A rise in CRR will lead to:
Decrease in Money Multiplier
Increase in Money Multiplier
No change
Increase in deposits
When people hold more cash in hand, Money Multiplier will:
Increase
Decrease
Remain constant
Uncertain
If M3 = ₹1000 and M1 = ₹600, Time Deposits = ?
₹300
₹400
₹500
₹600
If CRR = 8% and initial deposit = ₹1000, total deposit created = ?
₹10,000
₹12,500
₹8,000
₹6,250
If H = ₹500 and m = 4.5, Money Supply = ?
₹1,000
₹2,000
₹2,250
₹2,500
M2 includes:
M1 + Post Office Savings
M1 + Time Deposits
M3 + Post Office Deposits
Only M1
If CRR = 5% and SLR = 20%, then effective reserve = ?
15%
20%
25%
30%
Increase in high-powered money causes:
Fall in Money Supply
Rise in Money Supply
No change
None
If Cash with Public = ₹200, Demand Deposits = ₹800, Other Deposits = ₹100 → M1 = ?
₹900
₹1000
₹1100
₹1200
If CRR = 10%, people hold 15% cash of deposits, find Money Multiplier.
4
5
3.5
2.5
Money Supply = ₹10,000, H = ₹2,500 → Money Multiplier = ?
2
3
4
5
If H = ₹4,000, m = 3.5, M = ?
₹12,000
₹14,000
₹15,000
₹16,000
If RBI increases CRR from 10% to 20%, multiplier falls from ?
10 → 5
5 → 2.5
20 → 10
Both A and B
If total Money Supply = ₹80,000, Money Multiplier = 4, find Reserve Money.
₹10,000
₹20,000
₹25,000
₹30,000
If CRR = 10%,
→ credit multiplier = ?
₹500
10
₹700
₹800
If Money Supply = ₹1,00,000, H = ₹25,000 → Find CRR (assuming no cash leakage).
10%
20%
25%
None
M3 – M1 = ?
Currency
Demand Deposits
Time Deposits
None
If banks lend less, then Money Multiplier will:
Increase
Decrease
Remain same
Unpredictable
If H = ₹3000 and M = ₹12000, then (CRR + C/D) = ?
0.25
0.3
0.4
0.5
Narrow money refers to:
All bank deposits
Only demand deposits + currency
Only currency
Cash + time deposits
If M = ₹1,50,000, H = ₹30,000, and C/D = 0.25 → find CRR.
If public increases cash-deposit ratio, what happens?
Money Multiplier increases
Money Multiplier decreases
No effect
In India, M3 is also known as:
Broad Money
Reserve Money
High-Powered Money
Narrow Money
If reserve money = ₹1000 and total deposits = ₹4000 → CRR = ?
10%
20%
25%
None
When public shifts money from savings deposits to fixed deposits, which of the following falls?
M1
M2
M3
M4
