Given a Cash Reserve Ratio (CRR) being 20%, the value of money multiplier will be ____________.

3 20 10 5

5

The Correct answer is option (4) : 5 The formula for the money multiplier is given by : Money Multiplier = $\frac{1}{CRR}$ So, in this case, it would be $\frac{1}{0.20}=5$