Suppose in an economy, the initial deposits of ₹ 400 crores lead to the creation of total deposits worth ₹ 4,000 crores
Suppose in an economy, the initial deposits of ₹ 400 crores lead to the creation of total deposits worth ₹ 4,000 crores. Under the given situation the value of reserve requirements would be ____.
(a) 0.01
(b) 1
(c) 0.1
(d) 0.4
Anurag Pathak Changed status to publish January 4, 2024
Ans – (c)
Explanation:-
Total Deposit = Initial Deposits × 1/LRR
4,000 = 400 × 1/LRR
LRR = 400/4000
LRR = 1/10
LRR = 0.1
Anurag Pathak Changed status to publish January 4, 2024
