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Given, Staturary Liquid Ratio=20%

A comercial bank deposits=Rs.1200

How much money the bank can give as a loan ?

Solution

✅ Correct Option: 2

The bank must hold 20%20\% of deposits as liquid assets: 0.20×1200=2400.20 \times 1200 = 240. Loanable amount =1200−240=960= 1200 - 240 = 960.

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