Maximum credit that the commercial banks can legally create is indicated by: Options: A . &nbsp1SLR B . &nbsp1CRR×1Cash Reserves with the RBI C . &nbsp1CRR×Total deposits D . &nbsp1CRR×Cash reserves with the RBI

Answer: Option C : C 1 CRR × Total deposits is the total amount of credit banks can create.

Maximum credit that the commercial banks can legally create is indicated by:

Question

Maximum credit that the commercial banks can legally create is indicated by:

Options:

A . 1SLR

B . 1CRR×1Cash Reserves with the RBI

C . 1CRR×Total deposits

D . 1CRR×Cash reserves with the RBI

Answer: Option C
:
C

\frac{1}{CRR} \times Total deposits

is the total amount of credit banks can create.

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Question 1. Which of the following is not concerned with banking organisations?....

Question 2. If currency held is 300 and deposits in the bank are 400, what is the currency deposit ratio?....

Question 3. The demand for money which arises from not wanting to invest in stocks and bonds fearing capital loss is called:....

Question 4. Which of the following is the most commonly used measure of money supply?....

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Question 9. The goal of a public sector bank is:....

Question 10. Maximum credit that the commercial banks can legally create depends on their:....

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