Explanation:

- Option 1: Decreases

- During festive seasons, people tend to withdraw more cash for shopping and celebrations. This usually reduces the amount of cash held as deposits, decreasing the currency deposit ratio.

- Option 2: Increases

- This would imply people deposit more cash during festive seasons, which is less common as the demand for cash usually rises.

- Option 3: Has no impact on it

- Suggests that the festive season does not affect withdrawal or deposit patterns. This is less likely since festivals often influence spending behavior.

- Option 4: First decreases then increases

- Indicates initial withdrawals followed by redeposits after spending peaks, which is a plausible pattern after the festive rush ends.

- Correct Answer:

- Option 1: Decreases

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