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Read the following statements carefully and choose the correct alternatives given below: Statement 1 – The value of money multiplier is determined by the reserve ratio prevailing in the monetary system. Statement 2 – The process of credit creation directly relates to the value of reserve ratio. Alternatives: a) Both the statements are true. b) Both the statements are false. c) Statement 1 is true and Statement 2 is false d) Statement 2 is true and Statement 1 is false |
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Answer» c) Statement 1 is true and Statement 2 is false |
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