If amount of initial deposits with commercial banks is ₹ 3,000 crore and LRR is 25%, then total deposits created will be:
If amount of initial deposits with commercial banks is ₹ 3,000 crore and LRR is 25%, then total deposits created will be:
(a) ₹ 750 Crore
(b) ₹ 12,000 Crore
(c) ₹ 6,000 Crore
(d) ₹ 9,000 Crore
Anurag Pathak Changed status to publish December 27, 2023
Ans – (b)
Explanation:-
Total Deposits = Initial Deposits × 1/LRR
Total Deposits = 3,000 × 1/25%
Total Deposits = 3,000 × 4
Total Deposits = ₹ 12,000 Crores
Anurag Pathak Changed status to publish December 27, 2023
