If the required reserve ratio in an economy is 12.5%, the initial cash deposits of ₹2000 will increase the money supply by ______.

Commercial banks have generated Rs. 12,000 crores and CRR is 25%. Initial payments will be in the amount of:

Repo-Rate is the rate at which RBI lends money to commercial Banks for __________.

Which of the following is correct statement?

Arrange the following statements in chronological order with respect to open market operation.

(A) Bonds payments increases total reserves in the economy.

(B) RBI buys government bonds from the market.

(C) RBI sell bond if there is excess money supply.

(D) Higher reserves Increase money supply in the economy.

Choose the correct answer from the options given below:

Why does central bank is called the lender of last resort?

1. It lends money to the government to finance its budget deficit.
2. Central bank lends money to trade and industry to support their export operations.
3. When a country runs out of money, the central bank prints more money.
4. Central bank lends money to banks at all times.

If the total amount of deposits with a bank is 200 crores and the Reserve Ratio (RR) is 5% then what is the maximum loanable amount which the bank can lend out in the form of a loan?