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Yes, it can be faulty. Some damaged power supplies show good output voltages on the voltage range of a multimeter but, when you connect them, they don't work properly.

One possible reason is that maybe an IC in its voltage regulator has a high resistance between the common and the output. You cannot see this by shunting a voltmeter onto it. You have to place a typical load onto the output to test it.

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Q: You suspect that a power supply is faulty but you use a multimeter to measure its voltage output and find it to be acceptable Why is it still possible that the power supply may be faulty?
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