Question 21
MediumOriginal questionA person deposits ₹1,000 in a bank and the reserve ratio is 10%. In the first round, the bank can lend
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Reserves = 10% of 1,000 = 100.
The bank lends the rest: 1,000 − 100 = ₹900.
- Concept
- First round of lending
- Typical timeTypical
- 70 s
- Your timeYours
- —
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