Q 1. How does increase in LRR affect the creation of money by commercial banks?
Q.2. Suppose Central bank increases the rate of Bank Rate, does it effect the money creation by commercial bank? Explain.
Q.3. Suppose Central Bank decided the rate of LLR is 10 % and if the initial demand deposits with commercial bank is Rs. 10,000/- .Calculate, how much money or credit creation will be done by Commercial banks.
Q.4. Do you agree that commercial bank' creator of money' in the economy?
Q.2. Suppose Central bank increases the rate of Bank Rate, does it effect the money creation by commercial bank? Explain.
Q.3. Suppose Central Bank decided the rate of LLR is 10 % and if the initial demand deposits with commercial bank is Rs. 10,000/- .Calculate, how much money or credit creation will be done by Commercial banks.
Q.4. Do you agree that commercial bank' creator of money' in the economy?
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