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Questions › CUET-PG › CUET-PG 2026 › Q45
4 marks, −1Macroeconomics › Money supply and the banking multiplier › The monetary base and the money multiplierModerateabout 1 min

CUET-PG 2026 Question 45: Money supply and the banking multiplier

Sequence the working of money multiplier in correct order:

A. RBI Injects High Powered Money

B. Banks keep required reserves

C. Banks receives deposits

D. Banks gives loans

E. Deposit expansion.

Choose the correct answer from the options given below:

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Answer and worked solution

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Money supply and the banking multiplier has come up 74 times in 7 exams since 2005.

What this question tests

This question is on The monetary base and the money multiplier, part of Money supply and the banking multiplier in Macroeconomics.

How the money supply is built from high-powered money, and what sets the multiplier.

TestStop has 28 past-paper questions on this subtopic; the nearest in year are below.

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Question from the CUET-PG 2026 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.