Q.1 Read the following statements-Assertion (A) and Reason (R):
Attachments:
Answers
Answered by
0
D. Assertion A is false but Reason R is true.
Total deposit creation= Initial deposits * (1/LRR)
The total amount of deposits created will be determined by initial deposits and Legal Reserve Ration(LRR).
How many times the total deposits will be of the initial deposits will be determined by the LRR. This is given by-
Money Multiplier= 1/LRR.
Similar questions