With a CRR of 10% and an initial deposit of ₹200, the maximum total deposits the banking system can create is:
A₹200
B₹400
C₹2200
D₹2000
Answer & Solution
Correct answer: D. ₹2000
Total deposits = 200 × 1/0.10 = 200 × 10 = ₹2000.
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