If the multiplier is 4 and the total deposits are 1,00,000, calculate the primary deposits.

75,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

50,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

25,000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

10,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C
25,000

Primary deposits $= \frac{Total deposits}{Multiplier} = \frac{1, 00, 000}{4} = 25, 000$

Suggest Corrections

Similar questions

If the multiplier is 4 and the total deposits are 1,00,000, calculate the secondary deposits.

Q. Calculate the total deposit created by commercial banks if reserve ratio is

10 %

and primary deposit is

R s . 1, 250

crores.

Q. If total deposit created by commercial banks is

R s . 20.000

crores and the primary deposit is

R s . 2, 500

crores, what is the value of money multiplier and reserve ratio?

Q. Calculate the value of money multiplier and total deposit created if initial deposit is of

500

crore and LRR is

10

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?

Join BYJU'S Learning Program

If the multiplier is 4 and the total deposits are 1,00,000, calculate the primary deposits.

The correct option is C 25,000 Primary deposits =Total depositsMultiplier=1,00,0004=25,000

The correct option is C
25,000

Primary deposits $= \frac{Total deposits}{Multiplier} = \frac{1, 00, 000}{4} = 25, 000$