If the amount of LRR is 20 and the initial deposit is 1000 crores then it will create the total...........

Economics (CUET) Money and banking

If the amount of LRR is 20% and the initial deposit is 1000 crores, then it will create the total amount of money in the economy equal to_____________.

Rs. 6000 crores

Rs. 5000 crores

Rs. 7000 crores

Rs. 8000 crores

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Explanation:

Option (2) is correct.
Explanation: If the amount of LRR is 20% then the initial deposit of 1000 crores would create the total amount of money in the economy worth 1000 × 1/0.2 = 5000 crores.