If the total deposits created by banks is Rs 10 000 crores and legal reserve requirements is 40...........

If the total deposits created by banks is Rs 10,000 crores and legal reserve requirements is 40%, then amount of initial deposits will be____________

Rs 2000 crore

Rs 3000 crore

Rs 4000 crore

Rs 14000 crore

Money multiplier is 2.5. After dividing 10,000 by 2.5 we get initial deposits Rs 4000 crore.

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