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Topic Money multiplier
Asked 3 times across 2 UPSC exams over 4 years (2019–2023), peaking in 2019.
Key insights
- Most tested in CSE — 2 of 3 PYQs
- Most asked in 2019
- Recurs across 3 years (2019–2023)
How it travelled across exams
First appearance in each exam — the same idea, reframed.
CSE 2019 → CDS 2023
How the concept evolved
Rising — more than half its appearances (3 of 3) are since 2016.
Related concepts
Ideas UPSC tests alongside this one — keep exploring.
Sample questions
You've seen the pattern — here are a few of the actual PYQs.
CDS2023
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)
Economy › Money/Banking/Finance
CSE2021
The money multiplier in an economy increases with which one of the following?
- A Increase in the Cash Reserve Ratio in the banks
- B Increase in the Statutory Liquidity Ratio in the banks
- C Increase in the banking habit of the people ✓
- D Increase in the population of the country
✓ Correct answer: (C)
Economy › Money/Banking/Finance
CSE2019
The money multiplier in an economy increases with which one of the following?
- A Increase in the cash reserve ratio
- B Increase in the banking habit of the population
- C Increase in the statutory liquidity ratio
- D Increase in the population of the country ✓
✓ Correct answer: (D)
Economy › Money/Banking/Finance
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