If a bank receives a new deposit of Rs.1000 and has a cash reserve requirement of...
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If a bank receives a new deposit of Rs.1000 and has a cash reserve requirement of 10 per cent. Then it has Rs.900 to invest or give out as a loan. Assume the bank lends Rs.900 to a borrower who deposits the same in a bank with the same cash reserves requirement, what is the total amount of bank money created at this stage? If a bank receives a new deposit of Rs.1000 and has a cash reserve requirement of 10 per cent. Then it has Rs.900 to invest or give out as a loan. Assume the bank lends Rs.900 to a borrower who deposits the same in a bank with the same cash reserves requirement, what is the total amount of bank money created at this stage?
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Related Book For
Principles of Accounting
ISBN: 978-0618736614
10th edition
Authors: Belverd Needles, Marian Powers, Susan Crosson
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