Question

Calculate the value of the money multiplier and total created if intial deposit is of ₹ 5000 crores and LRR is 10%.

Answer 1

Given, LRR is 10% or 0.1
`"Money Multiplier"=(1)/(LR R)=(1)/(0.1)=10`
If initial deposit is of ₹ 500 crores , then :
Total Deposit = `"Initial Deposit" xx " Money Multiplier = 500 xx 10` = ₹ 5,000 crores