If the cash reserve ratio is lowered by the RBI, its impact on credit creation will be to
A. increase it
B. decrease it
C. no impact
D. None of the above
Answer: Option A
Solution(By Examveda Team)
If the cash reserve ratio is lowered by the RBI, its impact on credit creation will be to increase it.Join The Discussion
Comments ( 3 )
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CASH RESERVE RATIO AND CREDIT CREATION ARE ENVERSLY PROPORTIONAL TO EACH OTHER.
CASH RESERVE RATIO AND CREDIT CREATION ARE ENVERSLY PROPORTIONAL TO EACH OTHER.