If RBI raises Cash Reserve Ratio CRR then 1 Profitability of banking sector would dec...........

Economic Affairs Money Supply and Monetary Policy

If RBI raises Cash Reserve Ratio (CRR) then :

1. Profitability of banking sector would decline

2. Investment activity in economy will pick pace.

Select the correct code:

1 only

1 and 2 only

2 only

None of the above

Investment activity in economy will not pick pace because corpus of loanable funds with banks would decrease.

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