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प्रश्न
Credit money is increased when CRR:
विकल्प
Falls
Rises
Both falls and rises
None of the above
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उत्तर
Falls
Explanation:
Credit money rises when the Cash Reserve Ratio (CRR) or General Reserve Ratio (GRR) falls. When the central bank lowers the reserve ratio, commercial banks have more funds to lend, boosting credit creation in the economy. When the reserve ratio grows, banks must keep more funds in reserve, limiting their ability to lend and cutting credit money.
संबंधित प्रश्न
Credit creation by commercial banks is determined by (Choose the correct alternative)
Read the given extract carefully and answer the following questions.
| Mr. X wanted to buy an expensive motorcycle for his son but he did not have sufficient money to buy it. He approached a public sector commercial bank for the loan. The bank asked Mr. X to deposit 20% cash of the loan amount and rest 80% of the loan amount was given by the bank. |
- Briefly explain a Commercial Bank.
- What is the regulation of consumer credit in selective credit control?
- Name the bank which controls all the commercial banks and financial institutions in the country.
Explain the role of legal reserve ratio and Bank rate in correcting inflationary gap in an economy.
If legal reserve ratio is 20%, the value of money multiplier would be ______.
Which of these banks formulates the credit control tools?
To ensure that the citizens of the country have faith in the currency, the currency is issued by:
Primary deposits differ from derivative deposits because ______.
If CRR is 20% and initial deposit is ₹1000, total deposits created are ______.
A T-account shows that a ₹10,000 cash deposit increases ______.
Poor banking habits limit credit creation by ______.
