Commercial banks have generated Rs. 12,000 crores and CRR is 25%. Initial payments will be in the amount of:
Commercial banks have generated Rs. 12,000 crores and CRR is 25%. Initial payments will be in the amount of:
Solution
✅ Correct Option: 3
Money multiplier k = 1/CRR = 1/0.25 = 4. Total deposits created = Initial deposit times multiplier. So Initial deposit = 12000/4 = Rs 3000 crores.
Related questions:
2024: 16 May
2026: 15 May Shift 1
2025: 3 June Shift 2
2025: 15 May Shift 1