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NextQ69

Suppose for a hypothetical economy, reserve ratio changes from 20% to 25% and the value of primary deposits are Rs. 1,000 crore. Calculate the change in the amount of credit creation when reserve ratio changes from 20% to 25%.

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Question 68

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 Rs. __________. (Choose the correct alternative to fill in the blank)

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