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Free Interactive Lab

Bharat Bank Credit Creation Simulator

Money and Banking

Step into the role of a branch manager at Bharat Bank and master the art of credit creation. Learn how banks multiply money through the deposit-lending cycle while maintaining required reserves with RBI.

30 min
Duration
3
Missions
12
Problems
180
XP

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📖 Your Story

You have just been promoted to Branch Manager at Bharat Bank, a growing commercial bank in Pune. Your mentor, Senior Manager Mrs. Sharma, will guide you through understanding how banks create money through credit creation while following RBI's reserve requirements. You'll manage deposits, calculate reserves, and see how the money multiplier works in real-time.

What You'll Learn

  • Construct and interpret a bank's balance sheet showing assets, liabilities, and net worth
  • Calculate required reserves using the Cash Reserve Ratio (CRR) formula
  • Demonstrate the credit creation process through multiple rounds of lending
  • Apply the money multiplier formula to determine total deposit creation potential

How to Play

1Open the Bank Dashboard to view your current balance sheet with deposits, reserves, and loans
2Use the CRR Slider to adjust the Cash Reserve Ratio and observe how it affects lending capacity
3Click 'Process Deposit' to accept new deposits and calculate required reserves automatically
4Click 'Approve Loan' to lend out excess reserves and watch deposits multiply across rounds
5Monitor the Money Multiplier display to see total money creation in real-time

3 Missions Await

1

Balance Sheet Fundamentals

4 problems · 40 XP

2

The Credit Creation Challenge

4 problems · 60 XP

3

Money Multiplier Mastery

4 problems · 80 XP