Credit multiplier is equal to:
1/CRR
The correct answer is: 1/CRR (Cash Reserve Ratio). Credit multiplier is the ratio of total credit to the excess reserves held by the banks, and it is calculated as 1 divided by CRR.
Similar Questions
Which one of the following is an element of capital account in the Balance of Payments?
The ____ Oversees the Foreign Exchange Management Act, 1999.
In 1991, under the external sector reforms, Indian rupee ______.
In 1991, as an immediate measure to resolve the balance of payments crisis, the rupee was ______ against foreign currencies.
In relation to the balance of payments, a __________ deals with foreign exchange reserves, investments, loans, and borrowings.
Important Questions from External Sector
Which of the following best describes the term 'import cover', sometimes seen in the news?
With reference to Balance of Payments, which of the following constitutes/constitute the Current Account?
(1) Balance of trade
(2) Foreign assets
(3) Balance of Invisibles
(4) Special Drawing Rights
Select the correct answer using the code given below.
Consider the following actions which the Government can take:
1) Devaluing the domestic currency.
2) Reduction in the export subsidy.
3) Adopting suitable policies which attract greater FDI and more funds from FIIs.
Which of the above action/actions can help in reducing the current account deficit?
Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which one of the following statements best represents an important difference between the two?
Which one of the following groups of items is included in India’s foreign-exchange reserves?
