If cash reserve ratio of banks is 20% and currency reserves in the banking system amount to 50 million rupees, the maximum amount of demand deposits which can be created by the banks is (A) 200 million rupees (B) 250 million rupees (C) 500 million rupees (D) 1000 million rupees

If cash reserve ratio of banks is 20% and currency reserves in the ban

1.	If cash reserve ratio of banks is 20% and currency reserves in the banking system amount to 50 million rupees, the maximum amount of demand deposits which can be created by the banks is (A) 200 million rupees (B) 250 million rupees (C) 500 million rupees (D) 1000 million rupees
Answer» (B) 250 million rupees

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If cash reserve ratio of banks is 20% and currency reserves in the banking system amount to 50 million rupees, the maximum amount of demand deposits which can be created by the banks is (A) 200 million rupees (B) 250 million rupees (C) 500 million rupees (D) 1000 million rupees

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