For initial deposit of ₹ 6,00,000, the credit creation is calculated at ₹ 50,00,000. What is Required Reserved Ratio (RRR)?

CA Foundation · Business Economics · PYQS · September 2025
For initial deposit of ₹ 6,00,000, the credit creation is calculated at ₹ 50,00,000. What is Required Reserved Ratio (RRR)?
(A) A. 12%
(B) B. 10%
(C) C. 12.5%
(D) D. 8%

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. 12%

Topics: Money Market

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