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

75,000

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50,000

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25,000

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10,000

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Solution

The correct option is A
75,000

Initial deposits are given by $\frac{Total Deposits}{Multiplier} = 25, 000$ . Secondary deposits $= 1, 00, 000 - 25, 000 = 75, 000$ .

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

The correct option is A 75,000 Initial deposits are given by Total DepositsMultiplier=25,000. Secondary deposits =1,00,000−25,000=75,000.

The correct option is A
75,000

Initial deposits are given by $\frac{Total Deposits}{Multiplier} = 25, 000$ . Secondary deposits $= 1, 00, 000 - 25, 000 = 75, 000$ .