Calculate the value of money multiplier and total deposit created initial deposit is of 500 crore and LRR is 10-

Question

Toppr Admin · Accepted Answer

Given- LRR is 10 or 0-1-xA0-Money Multiplier -1LRR-10-1-10If initial deposit is of 500 crores- then-Total Deposit - Initial Deposit -xD7- Money Multiplier -500-xD7-10-Rs-5-000 crores-

Calculate the value of money multiplier and total deposit created if initial deposit is of $500$ crore and LRR is $10$ .

Given, LRR is $10$ or $0.1$
Money Multiplier $= \frac{1}{L R R} = \frac{1}{0.1} = 10$
If initial deposit is of $500$ crores, then:
Total Deposit $=$ Initial Deposit $\times$ Money Multiplier $= 500 \times 10 = R s . 5, 000$ crores.

Calculate the value of money multiplier and total deposit created if initial deposit is of 500 crore and LRR is 10.

Given, LRR is 10 or 0.1 Money Multiplier =1LRR=10.1=10If initial deposit is of 500 crores, then:Total Deposit = Initial Deposit × Money Multiplier =500×10=Rs.5,000 crores.

Calculate the value of money multiplier and total deposit created if initial deposit is of $500$ crore and LRR is $10$ .

Given, LRR is $10$ or $0.1$
Money Multiplier $= \frac{1}{L R R} = \frac{1}{0.1} = 10$
If initial deposit is of $500$ crores, then:
Total Deposit $=$ Initial Deposit $\times$ Money Multiplier $= 500 \times 10 = R s . 5, 000$ crores.