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Japan raises its interest rate from -0.1%
The Japanese Central Bank - Bank of Japan has increased its baseinterest rate for the first time in 17 years in an attempt to tighten monetary...
Surge pricing in theme parks
You may well have experienced a pricing method called surge or dynamic pricing if you are taking an Uber taxi. After a major concert, sporting...
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- Hi Swet, The bank can lend 200,000 because it can use 40,000 of the initial deposit to cover cash withdrawals based on the 20% minimum reserve requirement (40,000/200,000 x 100 = 20%). It can do the same for a 600,000 loan where 120,000 of...
- Thank you Grant that is fixed now
- The credit creation function is a bit unclear if bank can lend 1,60,000 in loan after keeping the reserve ration of 20% how is it able to lend 200,000 and then again 6,00,000 from the remaining 1,20,000?
- Mark, there is no PDF of the question, both are the answers.