Question 35
MediumOriginal questionIf total deposits created are ₹8,000 crore from an initial deposit of ₹2,000 crore, the reserve ratio is
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
Multiplier = 8,000 ÷ 2,000 = 4.
Reserve ratio = 1 ÷ 4 = 0.25 = 25%.
- Concept
- Reserve ratio from the multiplier
- Typical timeTypical
- 70 s
- Your timeYours
- —
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