Arrange the following statements related to money multiplier process in correct sequence.

(A) The bank has Rs 140 as deposits.
(B) The bank has Rs 80 to lend.
(C) A bank has a initial deposits of Rs 100 and needs to keep reserves as 20 per cent.
(D) The bank lends 50% of lending amount to Sonia.

Choose the correct answer from the options given below:

(C), (B), (D), (A)

The correct answer is Option (4) → (C), (B), (D), (A)

• C) A bank has an initial deposit of Rs 100 and must keep 20% as reserves. → So, reserves = Rs 20, lending capacity = Rs 80.

• (B) The bank has Rs 80 to lend. → This is the loanable amount after keeping the required reserves.

• (D) The bank lends 50% of the lending amount to Sonia. → Sonia borrows and spends Rs 40, which will get redeposited in the banking system.

• (A) The bank has Rs 140 as deposits. → The initial Rs 100 plus the new Rs 40 deposit leads to Rs 140 total deposits — showing the expansion of money through the multiplier process.