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Question
If CRR is 20% and initial deposit is ₹1000, total deposits created are ______.
Options
₹2000
₹5000
₹8000
₹1200
MCQ
Fill in the Blanks
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Solution
If CRR is 20% and initial deposit is ₹1000, total deposits created are ₹5000.
Explanation:
New deposits = (1/0.2) × 1000 = ₹5000 through the multiplier process.
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