NextQ45

Suppose in an economy, primary deposits are Rs. 500, if the Reserve Ratio is 25%. Estimate the total deposits created and the total lending by the banking system.

Commercial BanksStudy Simplify SpecialPYQ1MCQ
Question 44

In the context of the Commercial Banks, which of the following statements are correct ? (Choose the correct option) (I) Deposits received are liabilities for Commercial Banks. (II) They are creator of credit in the economy. (III) They accept deposits from general public. (IV) They accept deposits on behalf of Reserve Bank of India.

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