0
You visited us 0 times! Enjoying our articles? Unlock Full Access!
Question

Given a legal reserve ratio of 20% an initial deposit of Rs. 1000 in a banking system would create secondary deposit of Rs ________.

A
Rs. 5,000
B
Rs. 4,000
C
Rs. 6,000
D
Rs. 3,000
Solution
Verified by Toppr

Correct option is C. Rs. 4,000

Was this answer helpful?
48
Similar Questions
Q1
Given a legal reserve ratio of 20% an initial deposit of Rs. 1000 in a banking system would create secondary deposit of Rs ________.
View Solution
Q2
Given a reserve ratio of 20% for an initial deposit of Rs. 1000 create total supply of money.
View Solution
Q3
If initial deposits in a commercial bank is Rs 1000 and required reserve is 21% calculated money multiplier
View Solution
Q4
If the total deposits created by commercial banks is Rs.10,000 crores and legal reserve requirements is 40%, then amount of initial deposits will be ______.
View Solution
Q5
With the cash-reserve ratio of 20%, if a bank receives Rs. 5000 deposits, then the multiple expansion of credit would be?

View Solution