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Ashika
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Asked: 2024-09-08T23:10:15+05:30 In:

Calculate the value of the money multiplier and the total deposit created if the initial amount is rupees 700 crore and the LRR is 10%.

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Calculate the value of the money multiplier and the total deposit created if the initial amount is rupees 700 crore and the LRR is 10%.
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  1. Ashika
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    Value of the money multiplier = 1/LRR, which is equal to 1/0.1 = 10

    Initial deposit was Rs. 700 crore

    Thus, the total deposit will be:
    Initial deposit x Money multiplier

    = 700 × 10

    = 7,000 crores

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