Compute the total credit money created by the banking system if the required reserved ratio is 15% for every ₹12,00,000 deposited in the banking…

CA Foundation · Business Economics · PYQS · January 2025
Compute the total credit money created by the banking system if the required reserved ratio is 15% for every ₹12,00,000 deposited in the banking system?
(A) A. ₹1,00,00,000
(B) B. ₹80,00,000
(C) C. ₹1,25,00,000
(D) D. ₹1,50,00,000

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. ₹1,50,00,000

Topics: Money Market

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