Question

Calculate the total deposit created if initial deposit is 1000crores andLRR is 12.5%
​

Answer 1

Answer:

Given, LRR is 10% or 0.1

Money Multiplier =

LRR

1

=

0.1

1

=10

If initial deposit is of 500 crores, then:

Total Deposit = Initial Deposit × Money Multiplier =500×10=Rs.5,000 crores.

Answer 2

ANSWER
Given, LRR is 10% or 0.1
Money Multiplier =
LRR
1
​
=
0.1
1
​
=10
If initial deposit is of 500 crores, then:
Total Deposit = Initial Deposit × Money Multiplier =500×10=Rs.5,000 crores.


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