Given Cash Reserve Ratio 0.19 and Statutory Liquidity Ratio 0.06, how much will be the credit creation if there are new deposits of Rs 1,000 crore in
Given Cash Reserve Ratio 0.19 and Statutory Liquidity Ratio 0.06, how much will be the credit creation if there are new deposits of Rs 1,000 crore in commercial banks.
5 views
1 Answers
Legal reserve ratio `= "CRR" + SLR = 0.19 + 0.6 = 0.25`
Credit creation = New deposit `1//"LRR" = 1000 xx 1//0.25 = Rs 4,000` crore
5 views
Answered