If, at the end of the credit creation process, we have total deposits of 50,000, and initial deposits were 10,000, what is the amount of secondary deposits?

60,000

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50,000

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40,000

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10,000

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Solution

The correct option is C
40,000

Secondary deposits are total deposits minus the initial deposits. 40,000 is the secondary deposit.

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If, at the end of the credit creation process, we have total deposits of 50,000, and initial deposits were 10,000, what is the amount of primary deposits?

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If, at the end of the credit creation process, we have total deposits of 50,000, and initial deposits were 10,000, what is the amount of secondary deposits?

The correct option is C 40,000 Secondary deposits are total deposits minus the initial deposits. 40,000 is the secondary deposit.

The correct option is C
40,000

Secondary deposits are total deposits minus the initial deposits. 40,000 is the secondary deposit.