In an economy the cash reserve ratio is 0 middot 2 the cash deposit ratio is 0 middot 6 There is Rs ...........

Economics -II Financialand Capital Market

In an economy, the cash reserve ratio is 0·2, the cash deposit ratio is 0·6. There is Rs. 375 in currency and Rs. 125 in commercial bank reserves. Calculate the money supply. (150 words) (10 Marks)

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