NextQ66

In what ways do alterations in margin requirements impact the ease with which households and firms can obtain credit ? Assuming for a hypothetical economy, government induces an additional investment of Rs. 1,000 crore and 80 percent of additional income is spent on consumption. Estimate the values of the following : (i) Investment multiplier (K) (ii) Change in income (DY)

Money Creation by Commercial BanksStudy Simplify SpecialPYQ1MCQ
Question 65

In an imaginary economy, maintaining a Cash Reserve Ratio of 20% with primary deposits of Rs. 1,000, the total derivative deposits created by banks would be __________. (Choose the correct alternative to fill in the blank)

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