As reported in the newspapers, China has asked its banks to put 12.5% money instead of earlier 12% as CRR. This correction in CRR has been made for the seventh time in past one year. Why did China have to take this step again and again and so frequently? [OBC 2008] [a] It will put a curb on lending of money by the banks. [b] It will help Govt of China to tame the rate of inflation. [c] It will help the poor to get easy loans at cheaper rates from the banks as higher CRR brings more money for activities of the social sector.

• A.  Only [a] is correct
• B.  Only [b] is correct
• C.  All [a], [b] and [c] are correct
• D.  Only [c] is correct
• E.  Both [a] and [b] are correct