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Credit Multiplier is:
1CRR
cash×1 CRR
Cash x CRR
None of these
- Credit Multiplier refers to the concept in banking where the initial deposit can lead to a much larger amount of final deposit due to the reserve requirements.
- Option 1: 1CRR - This suggests that the multiplier is the reciprocal of the Cash Reserve Ratio (CRR).
- Option 2: Cash x 1 CRR - This expression likely means multiplying cash reserves by the unit CRR, which is not a valid calculation for the credit multiplier.
- Option 3: Cash x CRR - This implies multiplying cash by CRR, which also doesn't reflect the multiplier's calculation.
- Option 4: None of these - A default option if no other options correctly describe the multiplier.
Correct Answer: Option 1: 1CRR.
By: santosh ProfileResourcesReport error
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