If Cash Reserve Ratio is increased which of the following is likely to happen ........

Professional Legal Knowledge Banking Regulation Act

Download Solution PDF

If Cash Reserve Ratio is increased, which of the following is likely to happen?

The available amount of commercial bank will come down

The available amount of commercial bank will go up

The available government treasury will go up

None of these

छोटे Courses बड़े Results

Master Banking Regulation Act

Prepare through Micro-courses

Try Now

Explanation:

If Cash Reserve Ratio is increased, The available amount of commercial bank will come down. Cash Reserve ratio is the share of a bank’s total deposit that is mandated by the Reserve Bank of India (RBI) to be maintained with the latter as reserves in the form of liquid cash.