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

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Correct Answer: Option A
If the cash reserve ratio is lowered by the RBI, its impact on credit creation will be to increase it.
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3 Comments
AMAR KANT
AMAR KANT 8 years ago
Yes in bank reforms decreases in CRR thus higher possibilities to credit creation.
NILESH KAKDE
NILESH KAKDE 9 years ago
CASH RESERVE RATIO AND CREDIT CREATION ARE ENVERSLY PROPORTIONAL TO EACH OTHER.
NILESH KAKDE
NILESH KAKDE 9 years ago
CASH RESERVE RATIO AND CREDIT CREATION ARE ENVERSLY PROPORTIONAL TO EACH OTHER.