Which of the following statements is true?
A) Higher the reserve ratio, higher is the deposit-creation.
B) Higher the currency-ratio, higher is the deposit-creation.
C) Higher the currency- ratio, higher is the reserve-ratio.
D) Lower the reserve-ratio and lower the currency-ratio, higher is the deposit-creation.
Correct Answer:
Verified
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Q39: Banks create money, when banks:
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Q40: The currency ratio (cr) is:
A) the ratio
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Q44: Consider a situation where the reserve ratio
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