If the reserve ratio is 20%and …

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If the reserve ratio is 20%and the primary deposit are Rs100 the total lending by the banking system will be_____________.

Posted by Hardik Kumar 5 years, 8 months ago

CBSE > Class 12 > Economics

5 answers

Khushi Varshney 5 years, 8 months ago

SORRY 400 AYEGA MONEY MULTIPLIER=1/CRR =1/20%=5 MONEY SUPPLY=5*100=500 TOTAL LENDING=TOTAL SUPPLY-INITIAL DEPODITS =500-100 =400

0Thank You

Hardik Kumar 5 years, 8 months ago

500 kaise aayega plz.. Solve kr ke bta do

0Thank You

Khushi Varshney 5 years, 8 months ago

IT WILL BE RS.500 TOTAL LENDING=INITIAL DEPOSITS/CRR

1Thank You

Mrs Kumkum Ghosh 5 years, 8 months ago

It will be Rs80 bcoz primary deposit is Rs100 and 20% of it that is Rs 20 is kept by the bank as reserve remaining 80 is lend by the bank

3Thank You

Aayushi Garg 5 years, 8 months ago

4000

1Thank You

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