When the Reserve Bank of India announces an increase of the Cash Reserve 'Ratio, what does it mean? [IAS 2010]

Question

TuteeHUB · Accepted Answer

The Reserve Bank of India will have less money to lend

TuteeHUB · Answer

The commercial banks will have less money to lend

TuteeHUB · Answer

The Union Government will have less money to lend

TuteeHUB · Answer

The commercial banks will have more money to lend

1.	When the Reserve Bank of India announces an increase of the Cash Reserve 'Ratio, what does it mean? [IAS 2010]
A.	The commercial banks will have less money to lend
B.	The Reserve Bank of India will have less money to lend
C.	The Union Government will have less money to lend
D.	The commercial banks will have more money to lend
Answer» B. The Reserve Bank of India will have less money to lend

Discussion