alleryApproximately what percentage of bank deposits do Indian banks keep as cash reserves?
A100%
B5%
C50%
D15%
Answer & Solution
Correct answer: D. 15%
1. Indian banks keep roughly 15% of their deposits as cash reserves.
2. The remainder is loaned out to borrowers.
3. This fractional-reserve practice underlies modern banking.
_Source: syllabus Understanding Economic Development, Ch 3 "Money and Credit"_
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