When the cash reserve ratio (CRR) is increased by the RBI, it will:

Question

TuteeHUB · Accepted Answer

No impact on the supply of money in the economy

TuteeHUB · Answer

Increase the supply of money in the economy

TuteeHUB · Answer

Decrease the supply of money in the economy

TuteeHUB · Answer

Initially increase the supply but later on decrease automatically.

1.	When the cash reserve ratio (CRR) is increased by the RBI, it will:
A.	Increase the supply of money in the economy
B.	Decrease the supply of money in the economy
C.	No impact on the supply of money in the economy
D.	Initially increase the supply but later on decrease automatically.
Answer» C. No impact on the supply of money in the economy

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