General Studies · Indian Economy
Which of the following represents the basic theoretical formula for total credit creation by commercial banks?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Total Credit = Initial Deposit – Cash Reserve Ratio
- 2Total Credit = Cash Reserve Ratio × Loan Amount
- 3Total Credit = Loan Amount – Initial Deposit
- 4Total Credit = Initial Deposit × 1Cash Reserve Ratio✓
Correct answer
Total Credit = Initial Deposit × 1Cash Reserve Ratio
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