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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
Credit creation by commercial banks is determined by (Choose the correct alternative)
The creation of ______ is called credit creation.
______ is the rate of interest charged by the central bank on loans given to the commercial bank.
''The process of credit creation by commercial banks comes to an end when the total of required reserves become equal to the initial deposits."
With the help of a numerical example, prove that the given statement is true.
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 ______.
To ensure that the citizens of the country have faith in the currency, the currency is issued by:
What is meant by credit creation?
What is meant by primary deposits?
How money multiplier is related to Legal Reserve Ratio?
Which factor most directly limits credit creation?
