Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column I. Column I Column II A. Function of Commercial bank (i) Initial deposits $\times$ 1/"LRR" B. Money multiplier (ii) The difference between market value of the security and the amount of loan. C. Total money creation (iii) Acceptance of deposits D. Margin requirement (iv) 1/"LRR"

Question

KollegeApply · Accepted Answer

A. (iii), B. (iv), C. (i), D. (ii) Explanation: Column I Column II A. Function of Commercial bank (iii) Acceptance of deposits B. Money multiplier (iv) 1/"LRR" C. Total money creation (i) Initial deposits $\times$ 1/"LRR" D. Margin requirement (ii) The difference between market value of the security and the amount of loan.

AChoose Your Answer