total credit creation by commercial banks is rupees 40000 crores ..cash reserve ratio and statutory liquidity ratio are 8% and 12% respectively.. the amount of initial deposits will be what ??
Dear student
Money creation = initial deposit X
So, the initial deposit will be 3,200
Regards
Money creation = initial deposit X
(If LRR is not given, we will consider CRR to find the initial deposits i,e, 8%)
According to question
40,000 = initial deposit X According to question
So, the initial deposit will be 3,200
Regards