Advertisements
Advertisements
प्रश्न
What is the effect of Lower CRR on credit creation and money supply?
पर्याय
Lower credit creation and money supply
Deposits become currency equal to 0
Higher credit creation and money supply
Required reserves become loans
MCQ
Advertisements
उत्तर
Lower CRR requires a smaller percentage of deposits to be kept as cash reserves. This permits more lending, resulting in higher credit creation and money supply.
shaalaa.com
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
