General Knowledge - Indian Economy - Discussion

Discussion Forum : Indian Economy - Indian Economy (Q.No. 19)
19.

If the cash reserve ratio is lowered by the RBI, its impact on credit creation will be to

increase it
decrease it
no impact
None of the above
Answer: Option
Explanation:
No answer description is available. Let's discuss.
Discussion:
21 comments Page 3 of 3.

Subramaniyan said:   1 decade ago
The Cash Reserve means, RBI informs the banks to maintain particular cash as reserve. So if the reserve ratio is lower then the bank can utilize those cash for credit purpose.


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