Suppose Imtiaz moves his Rs1,000 demand deposit from Bank A to Bank B – McqOptions

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1.	Suppose Imtiaz moves his Rs1,000 demand deposit from Bank A to Bank B. If both banks operate with a reserve ratio of 10 percent What is the potential change in money supply as a result of Gerard’s action ?
A.	Rs 10,00
B.	Rs 1,000
C.	Rs 9,000
D.	Rs 0
Answer» E.

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