MCQOPTIONS
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MCQOPTIONS
| 1. |
Suppose all banks maintain a 100 percent reserve ratio. If an individual deposits Rs 1,000 of currency in a bank ? |
| 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 |
| Answer» B. the money supply increase by less than Rs 1,000 | |