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Calculate and show the working of money ...

Calculate and show the working of money creation by commerical banks if
(i) Primary deposit is 1250 crore and LRR is 10%

Answer

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Calcuate the total deposit created by commercial banks if reserve ratio is 10% and primary deposite is ₹ 1,250 crores.

Calculate the value of the money multiplier and total created if intial deposit is of ₹ 5000 crores and LRR is 10%.

Knowledge Check

  • What is the value of money multiplier when initial deposits ₹500crores and LRR is 10%?

    A
    0.1
    B
    0.2
    C
    10
    D
    20
  • Similar Questions

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