Question

Calculate the value money multiplier and the total deposit created if initial deposit is of Rs. 500 crores

and RR is 10%.
help me guyzz​

Answer 1

Answer:

Money multiplier = 1/LRR

So

It is equal to 1/0.1=10

The Initial deposit is Rs. 500 crores so

Total deposit = Initial deposit x money multiplier = 500 x 10 = 5000 crores.

Answer 2

Hey Mate !

Given, LRR is 10% or 0.1  

Money Multiplier =  1/LRR =1/0.1 =10

If initial deposit is of 500 crores, then:

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

Explanation:

Hope it helps u

Thank it !

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