CUET Economics - If the reserve ratio is 10% and the initial deposit with the commercial banks are Rs. 450 cr, the total money creation by the banking system will be : | PYQs + Solutions

CUET Economics

Macro

Easy

Rs. 4,000 Cr

Rs. 5,000 Cr

Rs. 3,500 Cr

Rs. 4,500 Cr

✅ Correct Option: 4

Related questions:

16 May Shift 1

What was the immediate impact of demonetization on the economy?

22 May Shift 2

Currency notes and coins cannot be refused by any citizen of the country for settlement of any kind of transaction due to which they are called __ __

3 June Shift 2

The Central Bank is a very important institution in the modern economy. What are the main characteristics of the Reserve Bank of India?

(A) India got its central bank in 1935.

(B) It is the custodian of the foreign exchange reserves of the economy.

(D) It also acts as a bank for the banking system.

Choose the correct answer from the options given below:

CUET Economics PYQs