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प्रश्न
Statement 1: Reserve Bank of India keeps a certain percentage of deposits as reserve to avoid 'too much lending to public'.
Statement 2: The reserve deposits ratio acts as a deterrence to the amount of credit created by the commercial banks.
पर्याय
Statement 1 is true and statement 2 is false.
Statement 2 is true and statement 1 is false.
Both the statement are true.
Both the statement are false.
MCQ
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उत्तर
Both the statement are true.
Explanation:
Commercial banks deposit a portion of their funds with the RBI to reduce credit, particularly during periods of high inflation. If more money is held by the RBI, it reduces the amount of money available to commercial banks, lowering lending availability.
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