Advertisements
Advertisements
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.
Advertisements
उत्तर
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
APPEARS IN
संबंधित प्रश्न
Explain the credit creation role of commercial banks with the help of a numerical example.
Explain the concept of ‘inflationary gap’. Also explain the role of ‘legal reserves’ in reducing it.
Do you consider a commercial bank ‘creator of money’ in the economy’?
______ is the main source of money supply in an economy.
What is meant by credit creation?
State the advantage of a credit card over currency notes.
What is meant by primary deposits?
How money multiplier is related to Legal Reserve Ratio?
If CRR is 20% and initial deposit is ₹1000, total deposits created are ______.
The key assumption for perfect credit creation is ______.
