Question Type: MCQ

Question No$.17.$ Mark$/$s: $1\mathrm{.}00||$ Negative Mark$/$s: $0\mathrm{.}00$

Read the following carefully and answer the following question.

Imagine! As an aftermath of the India$-$Pakistan war, currency with the public in the Indian economy showed a surge from INR $3995$ crore to INR $10231$ crore during the period $1970$ to $1975.$ During the same period, the Reserve Money of RBI $[$i$.$e$.,$ monetary base or high$-$powered money$]$ expanded from INR $4390$ crore to INR $14082$ crore. The time deposits also registered increase from INR $3103$ crore to INR $22820$ crore during the period. It was found that the narrow money supply in the economy changed from INR $6536$ crore to INR $17292$ crore.

The money multiplier for the year $1970$ and $1975$ respectively are:

$4\mathrm{.}312$ and $4\mathrm{.}886$

$3\mathrm{.}671$ and $3\mathrm{.}848$

$2\mathrm{.}196$ and $2\mathrm{.}848$

$0$ and $1$