CBSE Class-12 Economics: Questions 93 - 102 of 523
Get 1 year subscription: Access detailed explanations (illustrated with images and videos) to 523 questions. Access all new questions we will add tracking exam-pattern and syllabus changes. View Sample Explanation or View Features.
Rs. 900.00 or
Question number: 93
Question number: 94
Question number: 95
Question number: 96
Question number: 97
Describe in Detail
Explain the process of money creation by commercial banks.
Money creation (or deposit creation or credit creation) by the banks is determined by
(1) the amount of the initial fresh deposits and
(2) the Legal Reserve Ratio (LRR),
the minimum ratio of deposit legally required to be kept as cash by the banks. It is assumed that all the… (159 more words) …
Question number: 98
Question number: 99
Write in Short
Define marginal revenue. State the relation between marginal revenue and average revenue when a firm:
(i) is able to sell more quantity of output at the same price.
(ii) is able to sell more quantity of output only by lowering the price.