Economy, asked by kaakanksha32gmailcom, 7 months ago

If legal reserve ratio is 10% and new deposit Rs.2000. Explain the process of money

creation by the commercial bank. If new deposit decrease from Rs 2000 to Rs 1000

what will the impact on money creation.

Answers

Answered by Popie25

0

money supply to the economy will decrease as there would not b enough money for expansion

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