Economics · Indian Economy
In the Indian economy, what does the 'Money Multiplier' signify?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The percentage rate at which headline inflation increases over time
- 2The ratio of the total money supply to the monetary base (reserve money)✓
- 3The annual profitability growth rate of public sector commercial banks
- 4The ratio of nominal GDP to the total stock of money in the economy
Correct answer
The ratio of the total money supply to the monetary base (reserve money)
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