What are secondary deposits?
Secondary deposits are those deposits which arise on account of loans by the banks to the people. These are reflected as a part of demand deposits of the banks. They are also called derivative deposits.
If the multiplier is 4 and the total deposits are 1,00,000, calculate the secondary deposits.
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?