Option 1 -> Using money multiplier (1/CRR = 1/0.5 = 2), total deposits = 10,000 × 2 = 20,000.
Option 2 -> This would require CRR of 0.2, not 0.5.
Option 3 -> This is only the initial deposit, not total creation.
Option 4 -> This is the amount kept as reserve (10,000 × 0.5), not total deposits.
Hence, Option 1: 20,000 -> The money multiplier formula is 1/CRR. With CRR = 0.5, the multiplier is 1/0.5 = 2. Total deposit creation = Initial deposit × Money Multiplier = 10,000 × 2 = Rs. 20,000. This means banks can create total deposits worth Rs. 20,000 from the initial Rs. 10,000 deposit when 50% must be kept as reserves -> correct