Ayushi Asked a Question
August 13, 2020 12:49 pmpts 30 pts
46. Assume that the reserve requirement is 20 percent. If a bank initially has no excess reserves and Rs 10,000 cash is deposited in the bank, the maximum amount by which this bank may increase its loans is (1) Rs 2,000 2YRs 8,000 (3) Rs 10,000 (4) Rs 20,000 Hbll? (1) 2,000 To (2) 8,000 Fo (3) 10,000 Fo (4) 20,000 Fo
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  • Nidhi taparia thankyou
    I am afraid, none of the options is right here. When we know the initial deposits and reserve ratio, we find out the maximum loans that can be raised is given by the money multipl...
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