Iai May 2012 Q 11

Discussion in 'CT7' started by SURESH SHARMA, May 7, 2015.

  1. SURESH SHARMA

    SURESH SHARMA Member

    If In A Country The Bank Loans Out Rs 80 Out Of Rs 100 Deposit Then Bank Multiplier Would Be :??

    Ans As Per Paper Is 5

    Regards

    Suresh Sharma
     
  2. Bank multiplier=1/(liquidity ratio)
    here the liquidity ratio is 20%(20/100)
    So bank multiplier =1/20%=5
     

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