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Question
Match the following:
| Column I | Column II | ||
| A. | Formula of Money Multiplier | (i) | Inverse |
| B. | Money multiplier = 4 | (ii) | Money multiplier = 10 |
| C. | Relationship between LRR and money multiplier | (iii) | LRR = 0.25 |
| D. | LRR = 0.1 | (iv) | `1/"LRR"` |
Solution
| Column I | Column II | ||
| A. | Formula of Money Multiplier | (iv) | `1/"LRR"` |
| B. | Money multiplier = 4 | (iii) | LRR = 0.25 |
| C. | Relationship between LRR and money multiplier | (i) | Inverse |
| D. | LRR = 0.1 | (ii) | Money multiplier = 10 |
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Match the following:
| Column I | Column II | ||
| A. | Primary deposits | (i) | Payable on demand |
| B. | Derivative deposits | (ii) | Deposits for a fixed period of time |
| C. | Demand deposits | (iii) | Cash deposits of people |
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