Examveda
Examveda

In order to control credit, Reserve Bank of India should

A. Increase CRR and decrease Bank rate

B. Decrease CRR and reduce Bank rate

C. Increase CRR and increase Bank rate

D. Reduce CRR and increase Bank rate

Answer: Option C

Solution(By Examveda Team)

In order to control credit, Reserve Bank of India should Increase CRR and increase Bank rate. During high inflation in the economy, RBI raises the CRR to lower the bank's loanable funds.

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Which among the following statement is INCORRECT?

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