alleryWith a CRR of 20% and a fresh deposit of ₹100, the amount the bank can initially lend is:
A₹100
B₹500
C₹80
D₹20
Answer & Solution
Correct answer: C. ₹80
With CRR 20%, the bank keeps ₹20 of a ₹100 deposit and can lend the remaining ₹80.
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