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Question
Suppose in an economy, the initial deposits of ₹ 400 crores lead to the creation of total deposits worth ₹ 4000 crores.
Under the given situation the value of reserve requirements would be ____________.
Options
0.01
1
0.1
0.4
MCQ
Fill in the Blanks
Solution
Under the given situation the value of reserve requirements would be 0.1.
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Investment Multiplier and Its Mechanism
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