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How do you calculate net NPA ratio in reserve bank of India?
The NPA is a Non Performing Asset as defined by the Reserve Bank of India. To calculate the Net NPA you take the Gross NPA minus the balance of a suspense account, DICGC claims, part payments received, and the provisions held.
What is a bank's reserve to deposit ratio?
70%
What accurately describes how raising the required reserve reserve ratio reduces the money supply?
When the required reserve ratio is raised, banks must loan out a smaller portion of their reserves, resulting in fewer loans.
What term indicates the percentage of banks total deposit that must be kept in its own vaults?
reserve ratio
A bank has Rs 5 million in cash The minimum reserve ratio is 20 What is maximum potential increase in total deposits?
To calculate the maximum potential increase in total deposits, we can use the formula based on the reserve ratio. The reserve ratio of 20% means that the bank must hold Rs 1 million (20% of Rs 5 million) as reserves. The remaining Rs 4 million can be loaned out. Using the money multiplier (1/ reserve ratio), which is 5 (1/0.20), the maximum potential increase in total deposits is Rs 4 million multiplied by 5, resulting in Rs 20 million. Thus, the total potential deposits could increase to Rs 25 million (original deposits plus new deposits).
Does the simple money multiplier decrease as the reserve ratio decreases?
No, the simple money multiplier actually increases as the reserve ratio decreases. The money multiplier is calculated as 1 divided by the reserve ratio (MM = 1 / reserve ratio). Therefore, when the reserve ratio is lower, the denominator is smaller, resulting in a higher multiplier effect, allowing banks to create more money through lending.
Under a fractional reserve banking system the amount of money loaned out can only increase if what happens?
The required reserve ratio is lowered.
How do you calculate net NPA ratio in reserve bank of India?
The NPA is a Non Performing Asset as defined by the Reserve Bank of India. To calculate the Net NPA you take the Gross NPA minus the balance of a suspense account, DICGC claims, part payments received, and the provisions held.
What is Reserve requirement ratio?
The Required Reserve Ratio is the percentage/fraction of required reserves that should be held for every dollar of deposits in a depository institution that is required by the Federal Reserve.
Credit reserve ratio?
not sure
How do you calculate a ratio from a percent?
Formula to calculate the ratio
Formula for calculating cash debosit ratio?
cash reserve ratio
What is current cash reserve ratio?
The current cash reserve ratio (CRR) in India set by the RBI is 5% as on 21st august, 2009.
What describes how lowering the required reserve ratio reduces the money supply?
When the required reserve ratio is lowered, banks can loan out more money.
How do you calculate adjusted leverage ratio?
The Formula should be : = Liabilities / Adjusted Networth ( Adjusted Networth : Shareholder's equity minus revaluation reserve ( intangible in nature)) Save
What is a bank's reserve to deposit ratio?
70%
What accurately describes how raising the required reserve reserve ratio reduces the money supply?
When the required reserve ratio is raised, banks must loan out a smaller portion of their reserves, resulting in fewer loans.
