Question

Suppose in an economy, the initial deposits of ₹ 400 crores lead to the creation of total deposits worth ₹ 4000 crores.
Under the given situation the value of reserve requirements would be ____________.

Options

• 0.01

• 1

• 0.1

• 0.4

Answer 1

Under the given situation the value of reserve requirements would be 0.1.