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the following questions: a) Explain the money creation process through an example. b) If the Reserve Bank of India increases the reserve ratios how will

the following questions: a) Explain the money creation process through an example. b) If the Reserve Bank of India increases the reserve ratios how will the money multiplier change? c) Using the money demand and money supply curves model explain the impact of increase in GDP on interest rates? d) If people start holding more money due to higher risks what would be the impact on interest rates? Explain

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