Economy, asked by Anonymous, 6 months ago

Calculate the Total deposits if initial deposits is 3000 crores and LRR 25%.

Answers

Answered by taxadvbrijesh

1

Answer:

The answer is

Given, Legal Reserve Requirements (LRR) is 25% or 0.25

Money Multiplier =

LRR

1

=

0.25

1

=4

If total deposits created is of Rs.12,000 crates, then:

Initial Deposits =

MoneyMultiplier

TotalDeposits

=

4

12,000

=Rs.3,000 crores.

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