Question

LRR-20%
Initial Loan-3,00,000
FIND (1).Money Multiplier
(2).Total Money Creation
please show ALL the steps

Answer 1

Explanation:

K=1/LRR

=1/20%

=1/20/100

=100/20

=5times

Initail deposit=300000*100/20

=15lakhs

Total money creation = 15, 00,000

Hope this will help you