Q: What would be the impact on the economy if people start holding more currency in hand and less in deposits?
(a)Money demand will increase
(b)Money multiplier will decrease
(c)Money multiplier will increase
(d)Money demand will decrease
Correct Answer: (b)
The correct answer is (c) 'मुद्रा गुणक (मनी मल्टिप्लायर) में वृद्धि होगी'. This question from the General Studies domain tests knowledge of Miscellaneous.