Question discussion

When the Reserve Bank of India increases the Cash Reserve Ratio (CRR), the lendable resources of the commercial banks

2371Medium DSSSB TGT Computer Science 0 replies 1 views
0

When the Reserve Bank of India increases the Cash Reserve Ratio (CRR), the lendable resources of the commercial banks

  • Aremain unchanged
  • Bincrease
  • Cdecrease
  • Dbecome zero
Correct answer: C

Explanation

A higher CRR forces banks to keep a larger share of their deposits with the RBI, which reduces the funds available for lending.

Discussion 0

Nobody has replied yet. Start the discussion!