Cash reserve ratio is used by reserve bank of india 1 to provide money to government 2 as ...........

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Cash reserve ratio is used by reserve bank of india -

1. to provide money to government

2. as a tool to control money supply

3. to ensure banks have safe cushion against bank run

4. to control excess lending by banks

select the correct answer using the code below

1 and 2

2 , 3 and 4

2 and 4

all the above

Explanation:

banks may like to maximise their lending so that profitts are higher ,but if much of the funds are lent outt and there's a sudden rush to withdraw banks will struggle to meet the repayments. it is to avoid this situation that RBI specifies both CRR and SLR for the banks