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प्रश्न
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Credit Creation comes to an end when total cash reserves become equal to the initial deposits.
Reason (R): The value of money multiplier is determined by Legal Reserve Ratio (LRR).
विकल्प
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true but Reason (R) is false.
Assertion (A) is false but Reason (R) is true.
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उत्तर
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
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संबंधित प्रश्न
Explain the concept of ‘inflationary gap’. Also explain the role of ‘legal reserves’ in reducing it.
The ______ creation is called credit creation.
The process of money creation or credit creation is done by ______.
Identify which of the following Statement is true?
Deposits made by the people from their own resources are called ______.
Suppose in an economy, the initial deposit of ₹ 400 crores lead to the creation of total deposits worth ₹ 4000 crore. Then the value of reserve requirements would be ______.
What is money multiplier?
Why are the banks required to keep only a fraction of deposits as cash reserves?
Primary deposits differ from derivative deposits because ______.
The deposit multiplier formula is ______.
