If the total deposits created by commercial banks is $R s . 10, 000$ crores and legal reserve requirements is $40 %$ , then amount of initial deposits will be ______.
$2, 000$ crores
$3, 000$ crores
$4, 000$ crores
$14, 000$ crores

Question

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 -2-000 crores3-000 crores4-000 crores14-000 crores

Toppr Admin · Accepted Answer

Initial-xA0-deposit-Total-xA0-deposit-xD7-LRRInitial-xA0-deposit-Rs-10-000-xD7-0-4-xA0-Initial-xA0-deposit-Rs-4000-xA0-crores

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 ______.2,000 crores3,000 crores4,000 crores14,000 crores

Initial deposit=Total deposit×LRRInitial deposit=Rs.10,000×0.4 Initial deposit=Rs.4000 crores

If the total deposits created by commercial banks is $R s . 10, 000$ crores and legal reserve requirements is $40 %$ , then amount of initial deposits will be ______.
$2, 000$ crores
$3, 000$ crores
$4, 000$ crores
$14, 000$ crores

$I n i t i a l d e p o s i t = T o t a l d e p o s i t \times L R R$
$I n i t i a l d e p o s i t = R s .10, 000 \times 0.4$
$I n i t i a l d e p o s i t = R s .4000 c r o r e s$