If Cash Reserve Ratio is 20%, what will be the value of money multipl…

Money Multiplier (M)= 1/CRR

Given that the Cash Reserve Ratio is 20%, we can plug in $CRR=0.2$ into the formula:

M=1/0.2

Evaluating the expression, we get:

$$M=5$$

Therefore, the value of the money multiplier when the Cash Reserve Ratio is 20% is 5.