Suppose all banks maintain a 100 percent reserve ratio. If an individual deposits Rs 1,000 of currency in a bank ?

A. the money supply decrease by less than Rs 1,000

B. the money supply increases by more than Rs 1,000

C. the money supply increase by less than Rs 1,000

D. The money supply is unaffected

E. the money supply decrease by more than Rs 1,000

Be the first to comment if anything wrong with this mcq
Your comment successfully submitted!
It will automatically posted after review and approval by our staff member.