Question:medium
Find the missing figures and choose the correct option:
\[
\begin{array}{|c|c|c|c|}
\hline
\textbf{Round} & \textbf{Deposits} & \textbf{Loans (80\%)} & \textbf{Reserve Ratio (20\%)} \\
\hline
I & 5000 & 4000 & \_\_\_ \\
II & 4000 & \_\_\_ & 800 \\
\vdots & \vdots & \vdots & \vdots \\
\hline
\textbf{Total} & \_\_\_ & \_\_\_ & \_\_\_ \\
\hline
\end{array}
\]
Find the missing figures and choose the correct option:
\[
\begin{array}{|c|c|c|c|}
\hline
\textbf{Round} & \textbf{Deposits} & \textbf{Loans (80\%)} & \textbf{Reserve Ratio (20\%)} \\
\hline
I & 5000 & 4000 & \_\_\_ \\
II & 4000 & \_\_\_ & 800 \\
\vdots & \vdots & \vdots & \vdots \\
\hline
\textbf{Total} & \_\_\_ & \_\_\_ & \_\_\_ \\
\hline
\end{array}
\]
Show Hint
In money multiplier calculations, use the reserve ratio to determine how deposits and loans are distributed across successive rounds.
Updated On: Jan 13, 2026
- 1000, 800, 20000, 25000
- 800, 800, 25000, 20000
- 1000, 800, 25000, 20000
- 1000, 800, 20000, 25000
Show Solution
The Correct Option is C
Solution and Explanation
- In Round I, total deposits are ₹5000. With a 20% reserve ratio, reserves amount to:
\[
\text{Reserves} = 5000 \times 0.2 = 1000
\]
The remaining amount of ₹4000 constitutes loans.
- In Round II, deposits derived from loans are ₹4000. At a 20% reserve ratio, reserves are calculated as:
\[
\text{Reserves} = 4000 \times 0.2 = 800
\]
Loans are ₹4000 - ₹800 = ₹3200.
- This iterative process results in a cumulative total deposit of ₹25000, total loans of ₹20000, and total reserves of ₹5000.
Was this answer helpful?
0
Top Questions on Debts
- Complete the following table. Construct/Express the Consumption function at ₹ 200 crore level of income. \[ \begin{array}{|c|c|c|c|} \hline \textbf{Income (Y)} & \textbf{Savings (S)} & \textbf{Average Propensity to Consume (APC)} & \textbf{Marginal Propensity to Save (MPS)} \\ \hline 0 & -30 & 1 & 0.2 \\ 100 & 20 & 0.85 & 0.2 \\ 200 & 70 & 0.85 & 0.2 \\ 300 & 120 & 0.8 & 0.2 \\ \hline \end{array} \]
- Debts which have to be paid at some specific future date are known as:
- “Depreciation of currency may promote exports of a nation.”
Defend or refute the given statement with valid arguments. - \[ \begin{array}{|l|l|} \hline \textbf{Column I} & \textbf{Column II} \\ \hline \text{Cement shop owner} & \text{Self-employed} \\ \hline \text{Construction worker} & \text{Casual wage worker} \\ \hline \text{Civil engineer} & \text{Regular salaried} \\ \hline \end{array} \]
- Want to practice more? Try solving extra ecology questions todayView All Questions
