Credit Creation: Deposit Multiplier, Limits & Numericals
पहले notes और solved examples, फिर options चुनकर Submit & Check Answers करें। Answers/explanations केवल इसी topic के Submit के बाद खुलेंगे। All numerical data and reserve/policy ratios in exercises are hypothetical teaching assumptions, not live rates.
Commercial banks lending के साथ deposits create कर सकते हैं। PGT का simple multiple-deposit model एक conditional expansion limit बताता है: new reserve injection, fixed reserve ratio, no cash leakage, no excess reserves, full redeposit, willing creditworthy borrowers और other constraints non-binding। यह actual lending का automatic law नहीं।
Simple Deposit-Expansion Formula
ΔR fresh reserves का banking-system injection हो; cash leakage/excess reserves absent और ratio rr fixed हो।
Worked example: ΔR=₹1,000, rr=20%=.20 → multiplier5; total deposits=₹5,000; additional loans=₹4,000।
Interpretation: ₹5,000 includes initial ₹1,000 deposit. “Derivative deposits beyond initial” and loan expansion here ₹4,000 हैं। Bank A का first loan only ₹800 है।
| Round | Deposit received | Required reserve (20%) | Loan / next redeposit |
|---|---|---|---|
| A | 1,000 | 200 | 800 |
| B | 800 | 160 | 640 |
| C | 640 | 128 | 512 |
| … | Geometric series | … | … |
| System limit | 5,000 | 1,000 | 4,000 |
First Bank vs Whole System
Individual bank के first round को complete-system multiplier से अलग रखें।
Worked example: Initial deposit1,000; rr.20 → first bank loan=800; second bank may lend640 after redeposit।
Interpretation: Single bank first round में5,000 lend नहीं करता. Further deposits arise through repeated lending/payment/redeposit under stated conditions।
- Limits: public cash withdrawal, excess reserve holding, credit risk, capital rules, loan demand, profitability, settlement liquidity and central-bank policy। Lower statutory ratio alone does not ensure full lending expansion।
- If public transfers ₹100 already-held cash into a bank, public C falls100 and deposits rise100: initial M=C+D unchanged. New reserve injection in a multiplier question and existing-cash redeposit are not the same money-supply event।
- A loan repayment from a bank deposit can reduce both loan assets and deposit liabilities; a loan disbursement can raise both. The classroom reserve-first series and modern loans-create-deposits entry are complementary accounting illustrations, not identical causal stories।
Active Recall / Writing Practice
- Initial1,000 पर rr25% के first three rounds और system total बनाएं।
- Total deposits और derivative deposits में difference one paragraph में लिखें।
Notes बन्द करके लिखें। Review next day, third day और seventh day. File delivery, study attendance और mastery अलग हैं।
Memory recap: Simple model: ΔD=ΔR/rr; ΔL=ΔD−ΔR; assumptions first, arithmetic second।
Topic Test · 12 MCQs
Original revision questions, official PYQs या full official-pattern mock नहीं। Practice scoring +1 correct, 0 wrong/blank; no claim about official marking. Client-side answers inspectable हैं; this is not a secure examination platform.
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Your Revision Result
Your answer: · Correct answer: C. ₹5,000
ΔD=ΔR/rr=1000/.20=5000; initial deposit included है।
Your answer: · Correct answer: C. ₹4,000
Total deposits5000 minus reserves1000 =loan expansion4000। First-bank loan800 अलग है।
Your answer: · Correct answer: D. ₹800
First bank retains200 and lends800; system total को first-bank capacity न मानें।
Your answer: · Correct answer: B. ₹4,000
ΔD=1000/.25=4000; derivative beyond initial3000।
Your answer: · Correct answer: C. ₹6,000
ΔD=600/.10=6000;6000 includes initial600।
Your answer: · Correct answer: C. ₹640
Required reserve=.20×800=160; next loan=800−160=640।
Your answer: · Correct answer: D. ₹1,000
Total deposits5000×.20=1000; system redistributes initial reserve injection, creates deposits नहीं reserves।
Your answer: · Correct answer: C. ₹10,000 से ₹5,000
Old1000/.10=10000; new1000/.20=5000.9000→4000 loan-expansion pair होता।
Your answer: · Correct answer: D. Deposit expansion limiting case से कम होगी
Lending proceeds का कुछ हिस्सा redeposit chain से बाहर public currency बनता है, इसलिए deposits expansion कम होती है।
Your answer: · Correct answer: B. Loan demand, capital, credit risk और reserve preferences constraints हो सकते हैं
Relaxed reserve constraint necessary room दे सकता है; actual credit के अन्य constraints हटना guaranteed नहीं।
Your answer: · Correct answer: C. ₹0
C−100,D+100; initial composition change net zero। इसे fresh money-stock injection न कहें।
Your answer: · Correct answer: B. No leakage/excess-reserve conditional classroom limit
Formula restrictive redeposit assumptions पर series limit है; modern banking में loans, settlement, liquidity and capital constraints matter करते हैं।
Numerical routine: concept → formula → substitute → interpret. Wrong/guessed/slow items को 24 hours बाद new attempt दें।