Economics · Indian Economy
In the Indian economic context, the value of the money multiplier is primarily determined by which of the following?
- 1The foreign direct investment guidelines controlled by SEBI
- 2The fiscal deficit targets set by the Ministry of Finance
- 3The ratio of reserve money and broad money in the banking system✓
- 4The statutory reserve requirements and public banking habits set via the RBI
Correct answer
The ratio of reserve money and broad money in the banking system
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