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When Cash Reserve Ratio is 20% then with the deposit of Rs 1000, Money creation will be Rs 5000, Money multiplier is:
(a)0.5
(b)0.05
(c)5
(d)7/5

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Important Questions on Money and Banking
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Match List I with List II:
List I | List II |
(A) Flexible exchange rate | (I) Market forces |
(B) Devaluation | (II) Pegged exchange rate |
(C) Fixed exchange rate | (III) Floating exchange rate |
(D) Depreciation | (IV) Government |
Choose the correct answer from the options given below :

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Match List I with List II
List I | List II |
(A) Bank Rate | (I) Securities are pledged in order to repurchase |
(B) Marginal Standing Facility | (II) Minimum rate at which funds are provided for the long term |
(C) Repo Rate | (III) Also known as Penal Interest Rate |
(D) Reverse Repo Rate | (IV) Central Bank borrows funds from commercial banks |

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