When the currency-deposit ratio is 0, and the reserve-deposit ratio is 0.5, then the value of the money multiplier is ______ (in integer)
GATE 2026 Question 44: Money supply and the banking multiplier
Answer and worked solution
Checking your account…
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.
Similar questions from other papers
- Which institution formulates monetary policy?
- Which of the following limits the credit creation of Commercial Banks? A. Fixed and Demand Deposit B. Debts C. Reserves with Central Bank D. Cash in hand
- Arrange the following components of monetary aggregates in descending order as per their liquidity: (A) currency notes (B) demand deposits (C) time deposits (D) money…
- Which one of the following is part of the unconventional monetary policy?
- Which one of the following statements is CORRECT?
Question from the GATE 2026 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.