Question
Consider a fractional reserve banking system with a
legally required reserve-deposit ratio of m. Suppose that an individual deposits ID dollars in one bank. Then, the economywide change in total depositsSolution
The total change in deposits is equal to ID/m if nobody wants to hold currency and banks lend to their limit. If these two assumptions are relaxed, the increase in deposits is lower. So, in general, the increase in total deposits is at most ID/m.
Which of the following sections of the MSMED Act, 2006 is associated with the establishment of a 'Micro and Small Enterprises Facilitation Council'?
In case of an infrastructure project, a project finance account classified as ‘standard’ shall continue to be classified as ‘standard’ on accoun...
What is the maximum LTV for housing loans above ₹30 lakh and up to ₹75 lakh?
P rime Minister Narendra Modi inaugurated initiatives worth nearly Rs 5,000 crore for boosting the agri-economy in which region?
What is the minimum average maturity period of ECBs as per the ECB Framework of 2019?Â
What is the enhanced scope for mandatory onboarding in TReDS for buyers as per the Budget 2024-25?
If a sum of money doubles itself in 8 years at simple interest, the annual rate of interest is:
In ‘CAMELS’ what does C stand for?
Which of the following describes credit risk?
What is the new INR Swap Window support included in the SAARC Currency Swap Framework for 2024-2027?
