Question
Indian Economy Question on Banking, finance and macroeconomic policies
ACD Bank holds a total deposit of Rs. 256412. To expand the money supply in the economy during the COVID-19 pandemic period, the Reserve Bank of India reduces the cash reserve ratio (CRR) from 4.5% to 3.5%. Due to this policy change, the additional money supply generated by ACD Bank is Rs. ____ (in integer).
Answer
The correct answer is: 1628012 or 1628013 (approx.)