EconomicsFinancial institutionsJAMB
If the cash reserve ratio is 20%, a new deposit of ₦10,000 can create total deposits of up to
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Answer: C. ₦50,000
Credit multiplier = 1 ÷ 0.2 = 5; 5 × 10,000 = ₦50,000.
An AdmitMe practice question, written for the JAMB syllabus. Not an official past question.