If all banks keep a 100 percent reserve ratio, what happens when someone deposits Rs 1,000 of currency in a bank?

1. A Option A: The money supply decreases by more than Rs 1,000
2. B Option B: The money supply increases by more than Rs 1,000
3. C Option C: The money supply increases by less than Rs 1,000
4. D Option D: The money supply decreases by less than Rs 1,000
5. E Option E: The money supply is unaffected

Answer checked 11 October 2026 · How we write and check questions