Given that the cash reserve ratio is 10 percent, what is the maximum amount of that the banking system can create from an initial cash deposit of N1,000.00?

Adebajor95

9 years ago

THE ANSWER TO THE QUESTION ABOVE IS INCORRECT. IN FACT I CAN SAY NONE OF THE ABOVE IS THE ANSWER BECAUSE SINCE THE CASH RESERVE RATIO IS 10% (WHICH MEANS 10% OF THE MONEY DEPOSITED CANT BE TOUCHED) 10% OF 1,000 IS 100. DEFINITELY THEY CAN ONLY CREATE 900 (1000-100)

colikstan

3 years ago

900 is not in the option

segun ojumoola

9 years ago

its an error