Multiple Choice Questions

When RBI increases the cash reserve ratio CRR it will ........

Finance (Phase -I & II) Banking Sector In India

When RBI increases the cash reserve ratio (CRR), it will

Decrease money supply in the economy

Increase money supply in the economy

Increase supply initially but decrease automatically later on.

No impact on money supply in the economy

If RBI increases the cash reserve ratio (CRR), it will Decrease money supply in the economy

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