Question

If the reserve ratio is 20% and the primary deposits are Rupee 100, what is the value of deposit multiplier and total lending by the banking system? Given the same amount of initial deposits, if the RBI increased the reserve ratio to 25%, what would happen in the economy? Explain.

Answer 1

Answer:

A major source of air pollution results from the burning of fossil fuels. Vehicle and factory emissions are common sources of this type of air pollution. The burning of fossil fuels contributes to the formation of smog, a dense layer of particulate matter that hangs like a cloud over many major cities and industrial zones. Air pollution contributes to respiratory problems such as asthma, lung cancer, chronic bronchitis, and other lung ailments. Nitrogen and sulfur oxides in the air contribute to acid rain, which is a form of precipitation with a lower (more acidic) pH than normal. Acid rain harms forests, species that live in water bodies, and degrades outdoor statues, monuments, and buildings.

Explanation: