Suppose all banks maintain a 100 percent reserve ratio. If an individual deposits Rs 1,000 of currency in a bank ?

Money, Interest Rates And Output 24/04/2021

A. the money supply increases by more than Rs 1,000
B. the money supply increase by less than Rs 1,000
C. the money supply decrease by less than Rs 1,000
D. the money supply decrease by more than Rs 1,000
E. The money supply is unaffected

Related Mcqs:

    If the quantity of money demanded exceeds the quantity of money supplied then the interest rate will ?
    A. change in a certain direction B. remain constant C. fall D. rise...
    When real income increases other things equal we can expect the demand for real money holdings to ?
    A. fall B. not change C. increase D. None of these...
    Equilibrium in the Money market will change if there is ?
    A. a change in the real money supply B. a change in real income C. a change in competition in the banking industry D. any of the above...
    When economies speak of the demand for money which of the following are they asking ?
    A. How much cash do you wish you could have? B. How much wealth would you like? C. How much income would you like to earn? D. What proportion of your financial assets do you want to hold in non-interest-bearing forms...
    Banks create money by ?
    A. printing it B. issuing debit cards C. accepting cheques D. lending out part of their deposits...

Leave a Reply

Your email address will not be published. Required fields are marked *