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Question
If in an economy the initial deposits ₹ 4,000 crore and Reserve Ratio (RR) is 10%. The value of total deposit created would be ₹ ______ crore.
Options
4,000
40,000
2,000
20,000
MCQ
Fill in the Blanks
Solution
If in an economy the initial deposits ₹ 4,000 crore and Reserve Ratio (RR) is 10%. The value of total deposit created would be ₹ 40,000 crore.
Explanation:
Total Deposits = Initial Deposits × `1/"Reserve Ratio"`
= 4000 × `1/0.10`
= 40,000
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