Economy, asked by yashlassi26gmailcom, 5 months ago

credit creations is inversely related to the reserve deposit ratio. ​

Answers

Answered by akankshakamble6
1

Answer:

Total Credit creation = Initial deposits x 1/LPR. Money Multiplier: It means the multiple by which total deposit increases due to initial (primary) deposit. Money multiplier (or credit multiplier) is the inverse of Legal Reserve Ratio (LRR)

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