Money multiplier k = 1/CRR = 1/0.25 = 4. Total deposits created = Initial deposit times multiplier. So Initial deposit = 12000/4 = Rs 3000 crores.
CUET UG 2022 — Economics Macro
Commercial banks have generated Rs. 12,000 crores and CRR is 25%. Initial payments will be in the amount of:
Verified 13 Jul 2026.
Rs. 48,000 crores
Rs. 6,000 crores
Rs. 3,000 crores
Rs. 30,000 crores
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